Generalized Functional Form for Mutual Fund Returns

B-Tier
Journal: Journal of Financial and Quantitative Analysis
Year: 1980
Volume: 15
Issue: 5
Pages: 1107-1120

Authors (3)

Fabozzi, Frank J. (Groupe EDHEC (École de Hautes ...) Francis, Jack C. (not in RePEc) Lee, Cheng F. (not in RePEc)

Score contribution per author:

0.670 = (α=2.01 / 3 authors) × 1.0x B-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

Based on the theory of the pricing of capital assets developed by Sharpe [12], Lintner [9] and Mossin [11], Professor Jensen formulated a return-generating model to measure portfolio performance [5]. In a subsequent paper, Professor Jensen [6] investigated the impact of the investment horizon on the functional form of the model. Lee [8] has proposed a generalized specification of the model to resolve this problem. Alternative estimation methods for testing the linearity of the model in terms of time-series data have also been suggested by Lee. Moreover, the stability of the beta coefficient over time and the impact of the market's condition on both the alpha (or, Jensen's measure of performance [5]) and beta of the model have come under scrutiny in financial research.

Technical Details

RePEc Handle
repec:cup:jfinqa:v:15:y:1980:i:05:p:1107-1120_01
Journal Field
Finance
Author Count
3
Added to Database
2026-01-25