1 Abstract -- 2 Introduction -- 3 Chapter I: Literature on the subject of excess volatility -- 4 Chapter II: Excess volatility beyond discount rates -- 5 Chapter III: Evidence of excess volatility in the Eurozone market -- 6 Conclusions.

In Chapter 1, I document a novel result regarding the uncovered interest rate parity (UIP) puzzle: investing in high interest rate currencies does not yield positive excess returns during recessions. That is, the UIP holds in bad times. This new finding is a challenge to existing rational...

The dissertation consists of three chapters, each focusing on a different application of learning in financial markets. The first chapter addresses survivorship bias in the global equity markets. Survivorship bias refers to people’s tendency of focusing on successful individuals in inferring...