Abstract In terms of two constraints (noise trade and limited arbitrage), this paper structures a model based on the three periods framework used by Shleifer and Vishny(1997), to analyzes the behavior difference between the fund managers who have different expected horizons. The results argue that no matter wether investor sentiment runs downward or upward, the behavior of short run fund manager is harmful to fund investors, while the behavior of long run fund manager is benefit for fund investors due to the long run expectation; fund investors can identify the expectation horizon from the behavior and position in period 1 of fund managers..
LIU Jiang-Chuan,CHEN Jun. An Analysis on Behavior of Fund Manager under Three Periods Model Based on Noise trade and Limited Arbitrage. Economic Survey, 2012, 1(3): 0162.
2012, Vol. 1 
