The prices of ETNs often significantly exceed their indicative values. Since ETNs share many features in common with zero-coupon bonds, this empirical finding is unexpected. (Adopting the language of Wright, Diavatopoulos, and Felton (2010), we refer to this as the negative WDFD puzzle.) Using a...

This study examines the information content of Standard & Poor's common stock ranking changes. Since prior studies find Standard & Poor's common stock rankings provide investors with a measure of risk, a ranking change may signify a change in risk. Common stock ranking changes made by Standard &...

This paper examines whether commercial success in the popular recorded-music industry, as measured by gold-record output, conforms to an empirical concentration. We find that Lotka's Law overestimates the number of artists with one gold record and underestimates the number of...

This paper examines stock price reactions to changes in Standard & Poor's common stock rankings. Using internal memoranda obtained directly from Standard & Poor's, an event study methodology, and a sample of 191 upgrades and 582 downgrades, we find that the majority of stock price reactions...

We analyze the correlation between the political orientation of investors and their financial risk tolerance. Assessing financial risk tolerance is a very important aspect to developing an appropriate long-term investing strategy. Our study is based on a sample of 129 undergraduates at Central...

This study examines the information content of Standard & Poor's common stock ranking changes. Since prior studies find Standard & Poor's common stock rankings provide investors with a measure of risk, a ranking change may signify a change in risk. Common stock ranking changes made by Standard &...

This is a review of the book entitled "Navigate the Noise: Investing in the New Age of Media and Hype" by Richard Bernstein, published by John Wiley & Sons, Inc. in 2001. Mr. Bernstein is First Vice President and Chief Quantitative Strategist at Merrill Lynch

Felton, Mitchell and Stinson (2004) reported that web-based student evaluations of teaching (SET) demonstrated a student preference for course easiness and instructor sexiness. This study explores these same relationships with a larger and improved database. Results indicate even stronger...

This research examines the role of gender and optimism on the riskiness of investment choices of students in a semester long investment contest with both monetary and academic incentives. Data suggest that males make more risky investment choices than females, and that this difference was...

Accurately calculated historical returns are critical inputs for investment decisions. We document that data vendors' adjustments to historical prices for dividends and stock splits result in inaccurate estimations of historical returns. We demonstrate several techniques that can be used to...