Showing 1 - 10 of 1,059
The intention of this study was to document how closely households follow normative descriptions of financial behavior in relation to their financial planning horizon. Modern Portfolio Theory predicts that households, in general, exhibit risk aversion. Aversion to wealth volatility should...
Persistent link: https://www.econbiz.de/10013030409
In a panel survey of brokerage clients in the United Kingdom, participants mostly perceive their own portfolio as no more volatile than the market portfolio. Taking into account observed portfolio betas, this implies a belief in very low idiosyncratic portfolio volatility, which is even negative...
Persistent link: https://www.econbiz.de/10012935515
Successful entrepreneurs and executives often hold much of their wealth in a highly appreciated single stock and thereby face a difficult financial dilemma. On the one hand, the high idiosyncratic volatility of a concentrated single stock position can lead to significant risk of catastrophic...
Persistent link: https://www.econbiz.de/10013289581
We study the interactions between cryptocurrencies, stock markets, and economic policy uncertainty (EPU) by means of a Factor-Augmented Vector Autoregressive (FAVAR) framework. We rely on two market factors to model the comovements of returns within cryptocurrencies and stock markets. We...
Persistent link: https://www.econbiz.de/10014254302
This paper estimates ex-post returns to Australian housing in Australian capital cities 1999 2015 considering the cycle of asset ownership; acquisition, annual operations, taxation and disposition. Modelling accommodates financial leverage and varying taxation regimes. Results confirm home...
Persistent link: https://www.econbiz.de/10012985032
The existence of a relationship between Stock market fluctuations and the economy of the state, country or region may be interrelated to each other in one way or another. This research paper is an effort to understand the fluctuations or volatility in Indian Defence stocks and how it has...
Persistent link: https://www.econbiz.de/10014353103
Many suggestions in personal finance, such as financial ratio guidelines, are based on the assumption of relatively stable household income. However, little research has been conducted on factors related to household income volatility. We calculate the percent change in inflation-adjusted...
Persistent link: https://www.econbiz.de/10014238398
We document four features of consumption and income microdata: 1) household-level consumption is as volatile as household income on average, 2) household-level consumption has a positive but small correlation with income, 3) many low-wealth households have marginal propensities to consume near...
Persistent link: https://www.econbiz.de/10012847702
Persistent link: https://www.econbiz.de/10012860402
We document four features of consumption and income microdata: (1) household-level consumption is as volatile as household income on average, (2) household-level consumption has a positive but small correlation with income, (3) many low-wealth households have marginal propensities to consume...
Persistent link: https://www.econbiz.de/10012842090