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Abstract

In this research we first investigated the day-of-the-week effect in the Taiwan mutual fund market. The results revealed significantly negative Monday returns and positive Friday returns. This weekend effect did not vary greatly between the early and later periods of the month. In the absence of transaction costs, weekend trading strategies, both simple and complex, can increase returns and moderate risk. Finally, the pattern triggered by macroeconomic news can only partially subsume the weekend effects of fund returns.

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