Are recent asset pricing tests informative as they seem? The critiques of Roll and, more recently, of Berk are well known, though they have not been raised much in the asset pricing literature over the last 15 years. We explore this question using two sources of expected returns, realised...

The shares of BP plc and its subcontractors were rocked when the financial markets discovered the true impact of the Deepwater Horizon explosion as reported in the Wall Street Journal on 22 April 2010. While we track the impact of the disaster on share prices of the key participants, perhaps the...