Are You Smarter than a CFA’er?
25 Pages Posted: 22 Aug 2009 Last revised: 12 Apr 2013
Date Written: January 12, 2010
Several studies have examined whether a manager having an MBA or CFA leads to superior portfolio performance. However, these studies have yielded mixed conclusions. A possible reason is that most have considered only MBA or CFA alone, and most have not controlled for managers’ style targets. We examine MBAs and CFAs together, controlling for market conditions and style targets. We find no unambiguous difference in return attributable to MBA, CFA or Experience; but more significantly (especially in light of recent events), CFAs reduce and MBAs increase portfolio risk.
Keywords: CFA, MBA, portfolio managment, portfolio risk
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