The model proposed by Grinblatt and Titman (1989)is called:

A) proposed performance withholding
B) zero performance weighting (ZPW)
C) positive period weighting (PPW)
D) none of the above

Question

The model proposed by Grinblatt and Titman (1989)is called:

A) proposed performance withholding
B) zero performance weighting (ZPW)
C) positive period weighting (PPW)
D) none of the above

Quizplus · Accepted Answer

In a model proposed by Grinblatt and Titman (1989a),zero performance is assigned to an uninformed fund manager and positive performance to an informed manager.The model is called the positive period weighting (PPW)measure.In comparison,other measures such as Jensen's alpha may attribute negative performance to a successful market timer.

The Model Proposed by Grinblatt and Titman (1989)is Called