Research

Market Efficiency, Long Term Returns and Behavioral Finance Structure

The main theme of the article is revolving around market efficiency and long term returns to investors. Eugene F. FamaUniversity of Chicago - Finance Problem: Studies show that investors tend to focus on short term stock prices movement which is due to market efficiency. In a market efficiency...

Summary on Capital Asset Pricing Model: Theory and Evidence

The capital asset pricing model (CAPM) surges begins with the financial investment theory of William Sharpe (1964) and John Lintner (1965) that made them a highly valuable professional in the finance and business world for appreciation having owning a noble prize for Sharpe in 1990. This model is wi...

Review Fear and the Fama-French Factors

Robert B. Durand, Dominic Lim and J. Kenton Zumwalt (2011) ‘Fear and the Fama-French Factors’, Financial Management, (2), p. 409. Introduction The volatility Index (VIX) also referred to as the ‘investor fear gauge’ estimates the expected market volatility of the S&P 500 over the next 30 days....

Calendar anomalies and the financial trends’ role: an empirical research for the day of the week and the reverse weekend effect in the S&P 500

Vasileiou Evangelos, University of the Aegean There have been many researches as to how the calendar anomalies and timings of weeks and months affect the financial stock markets. Research paper Calendar anomalies and the financial trends’ role: an empirical research for the day of the week and the...

Does greater diversification really improve performance in portfolio selection?

Francesco Cesarone, Universita degli Studi Roma Tre - Dipartimento di Studi Aziendali Jacopo Moretti, Universita degli Studi Roma Tre - Dipartimento di Studi Aziendali Fabio Tardella, Sapienza Universita di Roma The main reason for selecting portfolio models is to reduce investment risk through...

Public sector mutual funds vs private sector mutual funds

Tarini, MBA (Finance), College of Agribusiness Management, Govind Ballabh Pant University of Agriculture &Technology, Pantnagar. Jayant Gautam, PhD Scholar, College of Agribusiness Management, Govind Ballabh Pant University of Agriculture & Technology, Pantnagar. Every investor seek...

Writing covered calls

Having a diversified portfolio is critical for any investor to be able to draw good returns on his investment. Every investor likes to keep a mix of stocks in his portfolio, with some stocks which are less volatile and at the same time offer good risk adjusted return. Keeping this need in mind we di...

A Unified Theory of Tobin’s Q (Bolton, Chen and Wang)

Liquidity is the most important factor of risk management, this is proven by the recent financial crisis of 2008 and 2011 The researchers Bolton, Chen and Wang propose in the document ’A Unified Theory Of Tobin’s Q’, a model of Investment and Corporate Financial Risk Management of a business that i...

The Eurozone Crisis and Its Contagion Effects on the European Stock Markets

Wasim Ahmad University of Delhi - Department of Financial Studies N. R. Bhanumurthy Delhi University Enclave Sanjay Sehgal University of Delhi - Department of Financial Studies Contagion effects A recent research The Eurozone Crisis and Its Contagion Effects on the European Stock Markets ma...

Option Writing Strategies in a Low Volatility Framework

Donald X. He Allianz Global Investors US LLC; University of California, Los Angeles (UCLA) - Anderson School of Management Jason C. Hsu Research Affiliates, LLC; University of California, Los Angeles - Anderson School of Business Neil Rue Pension Consulting Alliance Low vola outperformed The...