The performance of active portfolio management strategies

In comparison to passive investment strategies, active portfolio management covers quantitative methods to generate superior returns and manage risk effectively. While passive portfolio management is known to be well performing especially in the long-term, active investment strategies react too little or too late to new market information and are too complex for applications on the private investors side. Therefore, this research project examines the field of active portfolio management and its core components. In addition, investors’ willingness to participate at the stock market as well as their time-varying risk aversion are analyzed in the field of household finance.