Performance and development of Norwegian green funds

Master's thesis in Applied financeIncorporating environmental criteria in investment decisions is becoming increasingly important to a growing number of investors. The thesis evaluates the risk-adjusted performance of 23 Norwegian green funds. Describing the emergence of green finance in Norway is also an important part of the thesis. The green funds are compared to two benchmarks as well as a sin fund with low ethical standards. To analyze the funds, Sharpe ratio, Treynor ratio, and Jensen's alpha were applied. In contrast with recognized research, the results show that green funds over perform compared to the market. The analysis is based on a limited data sample