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Article: Investment returns on an Islamic-principled mutual fund in the United States: further evidence for the cost-of-discipleship hypothesis.
- Article from:
- Sociology of Religion
- Article date:
- March 22, 1994
- Author:
CopyrightCOPYRIGHT 1994 Association for the Sociology of Religion. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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In a previous article in this journal, I tested a hypothesis derived from Iannaccone's (1988) formal model of church and sect, that deviation in ethical standards away from the norms of the surrounding culture should be costly. To do this, I examined a set of ten mutual funds that applied various "ethical" screens to the possible investments they could make. After adjusting for risk, only one of the ten funds had a five-year return above the average for its type (and that by only a very small margin), while nine underperformed their category averages by a mean margin of over one percentage point per year.
The purpose of this note is to provide further evidence for ...