both create and share the risk associated with exchange rate volatility. In such circumstances, monetary policy can be used … of noise traders alters the composition of the market and generates excess exchange rate volatility, since noise traders … to lower exchange rate volatility without altering macroeconomic fundamentals. …

commensurate with their risk aversion; more risk-averse individuals pick lower-volatility stocks. The investors' portfolio …The preferred risk habitat hypothesis, introduced here, is that individual investors select stocks with volatilities … consistent with the predictions of the hypothesis: the portfolios contain highly similar stocks in terms of volatility, when …

We propose a new method to capture changes in hedge funds' exposures to risk factors, exploiting information from … 1994 and 2009, we find substantial evidence that hedge fund risk exposures vary significantly across months. Our new method … also reveals that hedge fund risk exposures vary within months, and capturing this variation significantly improves the fit …