The interaction of arbitrageur's and noise trading from a Behavioural orthodox approach is a new area of research. Noise traders are misled and they are making decisions not on data and forecasts, but based on their personal opinion. Their wrong estimate creates discount persistence throughout...

Mathematical explanation of noise trading from a behavioural Orthodox approach is a complete new subject of research. My model tries to calibrate noise in terms of systematic errors and biases formed by noise traders, as they ignore the religious factors that affect their thoughts and therefore...

In this article, we have tested a linear Gaussian state space model and the Kalman filter in testing ARMA(2,4) model of the natural logarithmic monthly market returns of event driven hedge funds. The fund manager primarily is targeting financial, micro and macro economic or political events,...

This article is a cross comparison of the different performance ratios between different types of hedge funds. The funds under study are long/short funds, market-neutral funds and event – driven funds. We use a sample free of survivorship bias and measure performance using risk adjusted...

Investment trusts or closed-end funds are known for the discount problem that arises within a few months. Specifically, According to Weiss (1989), shares in US funds are issued at a premium to net asset value, NAV, of up to 10 per cent. This premium represents the underwriting fees and start-up...

In this article, we test the put –call parity formula on a 3 – month OMX Stockholm 30 index option contract to show any evidence of arbitrage. The purpose of arbitrage is to buy the underpriced contract and sell the overpriced contract to record an arbitrage profit. We will illustrate...

This article examines the application of the information ratio in a rolling style analysis methodology to test the effects on the lognormal returns of a 3 – month OMX Copenhagen 20 Cap index option contract. The information ratio is calculated as the ratio of the excess return divided by the...

In this article, we are going to explain and analyze the different price elasticities of demand in relation to prices with intention to show the relative effects of the price and quantity movements along the demand and supply curve. In addition, we will show how they affect the cross elasticity...

In this article, we have applied an autoregressive moving average, ARMA(2,2) model of order AR(1), AR(2), MA(1), MA(2) and SMA(12) to test the natural logarithmic monthly market returns of the of the five stock call options contracts of well-known Swedish companies. The companies are Electrolux...

The purpose of this article is to find a reasonable and affordable price until the government accumulate surpluses and establish rehabilitation programs that aim to cover the expenses of the poors, and the beggars related to health, accommodation, food, water, education, and employment. The same...