Professor Korok Ray won the 2014 Brandes Institute Prize, awarded to an academic for compelling research in the fields of value investing and/or behavioral finance. Ray's winning entry will be published in The Journal of Investing. Here, Ray shares his insights in an exclusive discussion with...

Modern Portfolio Theory, standard asset pricing models and the concept of rational decision makers in efficient markets have major limitations as systems for modeling investor behavior and prices of financial assets. Financial market participants are not a uniform group of rational investors....

Risk parity is an asset allocation strategy designed so each asset class contributes equally to overall portfolio risk (as measured by volatility). While risk parity offers potential advantages, its success hinges on key assumptions and a favorable environment for bonds. Like the traditional...

Unlike traditional bonds, Floating-rate bonds (FRB) do not have a fixed rate coupon. Instead, their rate fluctuates or floats based on the market plus a spread. As a result, FRBs tend to be less vulnerable to interest-rate fluctuations. Many believe FRBs can help preserve principal, while...