Consider the following two well-diversified portfolios: the first consists of 100 preferred stocks and the second of 100 regular equity stocks. Which of the two portfolios is riskier? Common sense would seem to suggest that the equity portfolio is more risky. in terms of traditional concepts it...

We examine the hypothesis that dividend taxes are capitalized into share prices by focusing on investors= implicit valuations of retained earnings versus paid-in equity. Retained earnings are distributable as taxable dividends, whereas paid-in equity is distributable as a tax-free return of...

We study a variety of optimal investment problems for objectives related to aataining goals by a fixed terminal time.