We then use the predicted volatility to measure the unit price of risk and its changes due to the enactment of the Sarbanes-Oxley Act.Findings Our results regarding excess returns indicate that the implementation of SOX had a positive effect on the market. A positive effect means a steady ...
How can the capital asset pricing model (CAPM) influence financial decisions regarding risk and return? How can risk premiums influence financial decisions regarding risk and return? What are the risks and benefits of a business choosing to invest in a...
Section 4 shows the main empirical results and robustness checks regarding the pricing of US equity tail risk in the cross section of currency excess return. Section 5 discusses the construction of the global tail risk factor and the results for the asset pricing tests on various test assets. ...
Volatility is considered the most accurate measure of risk and, by extension, of return, its flip side. The higher the volatility, the higher the risk - and the reward. That volatility increases in the transition from bull to bear markets seems to support this pet theory. But how to ...
How can risk premiums influence financial decisions regarding risk and return? Explain diversifiable risk and non diversifiable risk. Explain why, in a competitive market, firms only generate normal profits in the long run, whereas they can generate supernormal profits in the short run. Expl...
has a lowrate of return, while astockin astart-uphas the potential to make aninvestorverywealthy, but also the potential to lose one's entire investment. Certain types of risk are easier toquantifythan others. To the extent that risk is quantifiable, it is generally calculated as thestandard...
Several regulated health insurance markets include the option for consumers to choose a voluntary deductible. An important motive for this option is to red
Regarding whether stock returns are predictable, a number of empirical studies yield positive results for the out-of-sample predictability of stock returns (see, inter alia, Campbell and Thompson, 2008; Gupta and Modise, 2013; Narayan and Gupta, 2015; Phan et al., 2018; Tissaoui and Azibi,...
The aim of this paper is to construct an index that reflects investor sentiment regarding sovereign debt markets and to analyze this index to predict the e... MG Fernández,C González-Velasco - 《International Review of Economics & Finance》 被引量: 0发表: 2020年 Sovereign CDS Premiums' Reac...
1.?Which of the following statements regarding risk-averse investors is true?? A.?They only care about the rate of return. B.?They accept investments that are fair games. C.?They only accept risky investments that offer risk premiums over the risk-free rate. D.?They are willing to ...