Risk-Adjusted Impact of Administrative Costs on the Distribution of Terminal Wealth for Long-Term Investment

Table 1

Opportunity cost of administrative costs () for selected combinations of parameter values (, ).

Fund
Example 1
Low volatility
Medium volatility
Pessimistic
Breakeven
Optimistic
High volatility
Pessimistic
Breakeven
Optimistic

*The interval indicates the domain for parameter according to the conditions in Section 3.2.