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Showing 1 to 1 of 1 for “"passive trading"”.

  1. Three essays on mispricing and market efficiency

    … holding a diversified portfolio while minimizing trading costs and taxes. In this paper, we focus on one negative externality of indexing: the effect on efficiency of stock prices. Based on a sample of large and liquid U.S. stocks, we find that greater indexing leads to less efficient stock …

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