The key to the dominance of low volatility equities is that high volatility stocks are bad investments on the two main dimensions of stockworthiness: volatility and return. Volatile stocks by definition have high volatility, and also high correlation with the overall market (CAPM beta) and the bu...
While company-specific risks make individual stocks high-risk investments, they also present opportunities for investors who are able to identify companies with strong management, competitive advantages, and robust risk management strategies. By carefully assessing and managing these risks, investors can ma...
The possibility of continuing to cut the market is not so great. However, many stocks in the market even exist at the current price. This consequence is similar to what I said during the national day last year that real estate stocks and bank shares would be cut off. In fact, I still ...
In this section, we test whether a high probability of earning jackpot returns can explain the low average returns of high distress risk stocks. In Section 4.1, we examine whether stocks with a high probability of jackpot returns have low average returns. In Section 4.2, we investigate the ...
摘要: We analyze various market frictions and risk factors in IPO stocks for up to five years after issuance. We document the differences across IPO samples sorted by market heat, underpricing level, offer price, underwriter prestige, and VC backing. Relative to cold IPOs...
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But in the last six to seven months — a volatile trading period during which stocks reached and retreated fromall-time highs— Wren said his team has "backed off of" that strategy in the interest of mitigating risk. "In other words, we've raised a little bit of cash, we've moved...
Tips for Assessing Your Risk Tolerance Self-assessment: Reflect on your comfort level with the ups and downs of the stock market. Are you willing to accept higher risks for potentially greater returns, or do you prefer stability even if that means potentially less in the end?
Many people invest in both, and that's not a bad idea. CDs, because they are low-risk, are a great hedge against the potential for losses in stocks. Key Takeaways CDs are low-risk, low-return financial vehicles that are best suited for short-term savings and risk-averse investors. St...
High-Risk, Unpopular Stocks Can Be FriendsFor about seven decades, academic studies have shown thatunpopular stocks outperform stocks...By DorfmanJohn