In this short note, we show investors one way to calculate ideal investment sizing by using two rules of thumb based on a simple outline of individual risk aversion. We illustrate these two heuristics, which are not widely appreciated, with thought experiments involving coin flips and ketchup &...

Cryptography is about communication in the presence of an adversary. Cryptofinance is the efficient exchange of ownership, the verification of ownership, as well as the ability to algorithmically design conditional contracts, all with security, privacy, and minimal trust without using...

For US investors, international equity exposure has never been so readily available at such a low cost. Nonetheless, surveys indicate US investors typically allocate 80–85% of their equity holdings to US equities, much higher than their proportion of global market value. In this note we...

This paper describes macroeconomics as multi-agent system alike to multi-particle system. Economic agents are treated as simple units of macroeconomics on economic space. Risk ratings of economic agents play role of their coordinates on economic space. Aggregates of economic variables of...

Based on Faff's (2015 & 2016a) template tool, Faff (2016b) explains how meaningfully layered “pitching research” tasks can be designed to accommodate a wide range of student mastery, that enable a clear/easily implementable pedagogic strategy. The current paper describes a real example of...

This paper models macro-finance on economic space alike to description of multi-particle systems. We treat economic agents as simple units of macro-finance system and use their risk ratings as their coordinates on economic space. Financial variables of separate economic agents are defined as...

We develop theoretical underpinnings of pairwise random matching processes. We formalize the mechanics of matching, and study the links between properties of the different processes and trade frictions. A particular emphasis is placed on providing a mapping between matching technologies and...

We develop a general procedure to construct pairwise meeting processes characterized by two features. First, in each period the process maximizes the number of matches in the population. Second, over time agents meet everybody else exactly once. We call this type of meetings “absolute...

Similar to Faff et al (2017a & 2017b), the current paper documents the pitches presented by finalists of a “pitching research” (Faff, 2015, 2018a, 2018b) competition held in November 2017, at the University of Queensland. The competition was co-sponsored by the UQ Association of Postgraduate...

The description of the dynamics and fluctuations of macro variables remains one of the most exciting problems of financial economics. This paper models macro variables via the description of transactions between agents. We use risk ratings x of agents as their coordinates in the economic space....