PBF and the Loss of Information Value with Uncertainty of Risk Preference of Portfolio Managers
Zeng Yong · 2004
Based on previous studies,the effects of PBF on utilization of a portfolio manager's private information are analyzed with uncertainty of risk preference of the manager,and the conditions for choice of two typical PBF structue are discussed with related optimal design of the structures being proposed.Furthermore,the significance of PBF is analyzed under the condition of low accuracy of the manager's private signal.