Showing 1 - 10 of 1,284
An analysis of trades in the Finnish stock market around the turn of the year shows that Finnish investors tend to realize losses more than gains towards the end of December. They also buy back the same stocks they recently sold, with a repurchase rate that depends on the size of the capital...
Persistent link: https://www.econbiz.de/10012787363
with empirical evidence, the model shows that (a) value stocks are those with higher cash-flow risk; (b) the size of the … value premium is larger in %u201Cbad times,%u201D due to time variation in risk preferences; (c) the unconditional CAPM …
Persistent link: https://www.econbiz.de/10012783344
Previous research shows that many people seek financial advice from non-experts, and that peer interactions influence financial decisions. We investigate whether such influences are beneficial, harmful, or simply haphazard. In our laboratory experiment, face-to-face communication with a randomly...
Persistent link: https://www.econbiz.de/10012911100
Behavioral finance models imply that an increase in shares outstanding leads to a lower stock price for firms with greater diversity in opinion among investors. Information asymmetry models imply that share issues by firms with greater information asymmetries are accompanied by larger share...
Persistent link: https://www.econbiz.de/10012785450
find that advisors induce their clients to take more risk, thereby raising expected returns. On the other hand, we find … limited evidence of customization: advisors direct clients into similar portfolios independent of their clients' risk … 2.7% each year in fees and thus gives up all of the equity premium gained through increased risk-taking …
Persistent link: https://www.econbiz.de/10013043279
The literature has not unambiguously established that a positive alpha, as traditionally measured, means that an investor would want to buy a fund. However, when alpha is defined using the client's marginal utility function, a client faced with a positive alpha would generally want to buy. When...
Persistent link: https://www.econbiz.de/10013077226
Ranguelova that examined the implication of portfolio risk after the transition to an investment-based system has been completed … system that is completely investment-based. We model intergenerational guarantees and assess the risk of such guarantees to … combinations of taxes and saving deposits in the later years. The extra risk to retirees and/or taxpayers is relatively small …
Persistent link: https://www.econbiz.de/10013243931
Transaction costs in trading involve both risk and return. The return is associated with the cost of immediate … execution and the risk is a result of price movements during a more gradual trading. The paper shows that the trade-off between … risk and return in optimal execution should reflect the same risk preferences as in ordinary investment. The paper develops …
Persistent link: https://www.econbiz.de/10012761661
distributions of risks give rise to components of equilibrium prices that differ from the risk prices widely used in asset pricing …
Persistent link: https://www.econbiz.de/10013222314
prices, including the equity premia, risk-free rate and volatility puzzles …
Persistent link: https://www.econbiz.de/10013101822