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Do women make better money managers?


The perception that men have greater power in the workplace is why women outpace them when it comes to investment returns, researchers say.

Female money managers consistently outperform their male counterparts, and social scientists say this unbalanced power dynamic is one reason why. But, they add that eventually, as the power balance evens out in the workplace, women may lose some of that edge.

Men’s higher testosterone levels lead them to trade more and take more risks.

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  • Alessandra Rizzotti

    Great point: "As more women rise to leadership roles, bosses of both genders will gravitate towards management styles that work best, which means men and women might solicit the advice and expertise of their colleagues. On the flip side, some female executives confident in their power and not bound by gendered tenets about how women “should” behave might act more like men."