Closed-end Fund Prices

How do closed-end funds generate prices?

Project title

Closed-End Mutual Fund Performance and Prices (HREC 1954863.1)


The aim of this investigation is to examine the ability of markets to price closed-end mutual funds. For this purpose, we will conduct a controlled market experiment where participants allocate cash across several investment funds over multiple periods, based on their information regarding fund returns with respect to fund size. This project has been approved by the University of Melbourne’s Human Research Ethics Committee, and internally funded by The University of Melbourne.

What will I be asked to do?

Should you agree to participate, you will be given the opportunity to earn money by completing a computer trading task. The task involves allocating your cash across 5 different assets and trading these assets in subsequent periods as you learn about their past performance. The estimated time of commitment will be about 2 hours. Participation in this study is completely voluntary and the information collected will remain confidential. You will receive between $20 and $65 for your participation. Part of the payment will depend on your performance in the trading session, in other words, the cash you hold and the payoffs from your fund investments in one chosen period.

How will my confidentiality be protected?

This is a de-identified study. We will protect the confidentiality of your trading and responses to the fullest possible extent, within the limits of the law. Only de-identified participant codes will be used in storage of the data; identifying information is used only for payment purposes, and the link between identity and participant codes is kept separately from trading and response data. All data will be kept securely in the Department of Finance for a minimum of five years from the date of publications to result from the experiment.

How will I receive feedback?

Results of the study will be available from the researchers’ websites, be presented at conferences and be published in peer-reviewed journals.

Will participation prejudice me in any way?

Please be advised that your participation in this study is completely voluntary. Should you wish to withdraw at any stage, or withdraw any unprocessed data you have supplied, you are free to do so without prejudice, and receive $10. Any potential conflicts of interest arising if you are a student of the above researchers will not affect your grades in any way.

Where can I get further information?

Should you require any further information, or have any concerns regarding the conduct of this research, please contact Prof Peter Bossaerts on 03 9035 3257.

This project follows the guidelines of the National Health and Medical Research Council Statement on Human Experimentation, and has been approved by: Human Research Ethics Committee, The University of Melbourne.

If you wish to contact someone independent of the study about ethical issues or your rights, or if you have any concerns or complaints relating to your participation in the study, you may contact: The Executive Officer, Human Research Ethics Committee, The University of Melbourne (phone: 03 8344 2073, fax: 03 9347 6739).

How do I agree to participate?

If you decide to participate, please sign up for an experimental session here.

Human ethics approval

This study has been approved by the University of Melbourne Human Research Ethics Committee (project ID: HREC 1954863.1).

Brain, Mind and Markets Lab
Department of Finance
The University of Melbourne
Victoria 3010 Australia
Phone: +61 3 9035 9950