Do investors behave rationally? Itzhak Ben-David, the Neil Klatskin Chair in Finance and Real Estate, and his colleagues examine why, despite three decades of research on mutual funds, it is unclear whether investors in mutual funds display rational behavior. 

Research by Itzhak Ben-David, the Neil Klatskin Chair in Finance and Real Estate, and his colleagues seeks to address whether investors naively look only at raw returns when making asset allocation decisions, or if they adjust returns for risk, using an asset pricing model?