philosophy of risk sharing and strict rules governing its activities to be in line with Islamic Law (the Shariah), the industry … the risk taking in order to justify earnings. IFSIs may need to cooperate in developing risk management standards and … practices to mitigate risk that are unique to themselves as well as review the contracts and assets that may expose the IFSIs to …

While the empirical literature has often documented a “default anomaly”, i.e. a negative relation between default risk … and stock returns, standard theory suggests that default risk should be priced in the cross-section. In this paper, we … components; we measure the systematic part as the sensitivity of the physical PD to an aggregate measure of default risk. While …

We study the behavior and interaction of systematic and idiosyncratic components of risk in a cross-section of U ….K. stocks. We find no clear evidence of a trend in any component of total risk, but we document different “regimes” in the … behavior of each component of total risk, in their correlation patterns and thus in their contribution to aggregate risk …

source of judgment bias, and (weakly) risk aversion, affect such a project choice. In contrast, wealth does not appear to …

studies on cross-sectional risk pricing …

persistent idiosyncratic risk is strongly countercyclical, with an annual auto-correlation equal to .973 and an standard …

In this study, we investigate the attenuation of idiosyncratic risk and corresponding benefits of diversification for … absolute benefits of risk reduction by testing the homogeneity of variances of portfolios of different sizes using Levene …'s Test. Next, we perform a cost-benefit analysis to determine the return benefit of diversification from a practical …

(1965), Idiosyncratic risk, market risk, beta and Jensen’s alpha have been used as a tool for financial analysis of …