Click to login and read the full article.
Don’t have access? Click here to request a demo
Alternatively, Call a member of the team to discuss membership options
US and Overseas: +1 646-931-9045
EMEA: +44 0207 139 1600
Abstract
In this article, the authors estimate the cost of practicing socially responsible investing. Using these results, investors may determine whether imposing restrictions on the available investment universe is the most cost-efficient method for promoting the particular social ideal. The authors design and execute a Monte Carlo simulation to compare the performance of a skillful investor in an unrestricted investment universe with the performance of the same investor in a restricted investment universe. They repeat this for a variety of skill levels and investment universes and find that the cost of socially responsible investing is substantial for even moderately skilled investors.
- © 2008 Institutional Investor, Inc.
Don’t have access? Click here to request a demo
Alternatively, Call a member of the team to discuss membership options
US and Overseas: +1 646-931-9045
UK: 0207 139 1600
Log in using your username and password
In this issue
Jump to section
Similar Articles
Cited By...
- An Examination of the Efficacy of Christian-Based Socially Responsible Mutual Funds
- Normal Return Gaps: Dispersion Illuminates Diversification
- ESG Investing: From Sin Stocks to Smart Beta
- Lowering Portfolio Risk with Corporate Social Responsibility
- Some Considerations for Investors Exploring ESG Strategies
- Do "Good Guys" Finish Last? The Relationship between Morningstar Sustainability Ratings and Mutual Fund Performance
- ESG Investing: A Simple Approach
- Best Practices in ESG Investing
- Evaluating a New Hot Trend: The Case of Water Exchange-Traded Funds
- Using Social Responsibility Ratings to Outperform the Market: Evidence from Long-Only and Active-Extension Investment Strategies
- A Synthesis of Modern Portfolio Theory * and Sustainable Investment