Document Type

Peer Reviewed/Refereed Publication

Publication Date

Spring 2009

Publication Title

Journal of Applied Economics and Policy


Economics and Finance


Arthur J. Bauernfeind College of Business


This paper examines an equity portfolio comprised of publicly traded firms that serve as the primary sponsor of a NASCAR race team to determine whether such a "specialty fund" could diversify risk as effectively as a more carefully chosen portfolio. We calculate risk adjusted return measures and find that the NASCAR portfolio consistently outperforms market benchmarks. We also find that over longer time periods (greater than three years) the constructed portfolio exhibits lower risk than a market benchmark. We contend that NASCAR sponsorship may serve as a signal to the market of a firm's financial health.



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