Disposition Effect of Investors - Student Managed Investment Fund (SMIF)

Date

2019-05-06

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Abstract

The Disposition Effect was first introduced by Hersh Shefrin and Meir Statman in their 1985 paper known as “The disposition to sell winners too early and ride losers too long: theory and evidence”. It was introduced in behavioral finance and refers to the characteristic of investors to sell their high earning investments while keeping their losers. As investors, we are concerned about gains, so by selling our winning investments quickly, we are locking in our gains and our certainty. My thesis explores whether Alfred University's Student Managed Investment Fund (SMIF) club investors display the Disposition effect or not.

Description

Thesis completed in partial fulfillment of the requirements for the Alfred University Honors Program.

Keywords

Honors thesis, Disposition effect, Investing, Student Managed Investment Fund (SMIF)

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