Survey about compensation schemes and risk taking for fund managers Situation: You are a professional fund

manager (you invest money for others). The compensation for your hard work depends on your contract as well as how much of your own money you invest in the fund you are managing. There are two different financial products you can invest in and each costs 10.000 . A: This financial product has a 50 % chance of gaining in value and reaching the value of 13.000 and a 50 % chance of losing value and ending up at the value of 8.000 . B: This financial product has a 50 % chance of gaining in value and reaching the value of 11.500 and a 50 % chance of losing value and ending up at the value of 9.500 . 13.000 11.500

A: 10.000
8.000 Questions

B: 10.000
9.500

The following numbers will show the profits/losses for you and for the person whose money you are investing for each financial product and for each equally likely case. Question 1: You only manage your own money and invest your 10.000 . Would you choose financial product A or B? Your Profit/Loss Good Case +3000 A Bad Case -2000 Good Case +1500 B Bad Case -500 Question 2: The fund you are managing now contains of 5.000 of your own money and 5.000 of someone elses money who gave it to you to invest. For this service you receive 2 % of the other persons money, namely 100 . Would you choose financial product A or B? Your Profit/Loss +1600 -900 +850 -150 Others Profit/Loss +1400 -1100 +650 -350

A B

Good Case Bad Case Good Case Bad Case

Question 3: The fund you are now managing contains of 1.000 of your own money and 9.000 of someone elses money. For this service you receive 2 % of the other persons money, namely 180 . Would you choose financial product A or B? Your Profit/Loss +480 -20 +330 +130 Others Profit/Loss +2520 -1980 +1170 -630

A B

Good Case Bad Case Good Case Bad Case

Question 4: The fund you are now managing contains 10.000 of someone elses money. For this service you receive 2 % of the other persons money, namely 200 . Would you choose financial product A or B? Your Profit/Loss +200 +200 +200 +200 Others Profit/Loss +2800 -2200 +1300 -700

A B

Good Case Bad Case Good Case Bad Case

Question 5: The fund you are managing now contains 10.000 of someone elses money. For this service you receive 2 % of the other persons money, namely 200 and in addition you receive 20 %of the profits you generate. Would you choose financial product A or B? Your Profit/Loss +800 +200 +500 +200 Others Profit/Loss +2200 -2200 +1000 -700

A B

Good Case Bad Case Good Case Bad Case

Question 6: What is your gender? Male Female

Thank you very much for your participation.