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-sum investment cost, of which a fraction must be financed by entering into an equity-for-guarantee swap. The entrepreneur is exposed … a geometric Brownian motion. We derive the corporate security prices, guarantee costs, optimal investment and financing … policy. Numerical analysis discovers that the entrepreneur postpones investment in boom but accelerates in recession. The …
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Over the last two decades, commodity indices have been increasingly used to achieve investment portfolio …
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Investors who have the flexibility to invest both long and short can benefit from both “winners” and “losers.” This will be especially advantageous if the latter — the short-sale candidates — are less efficiently priced than the winners — the purchase candidates. This is likely to...
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