Consider a financial market equilibrium with correlated firms and risk averse investors holding diversified portfolios. When an activist investor has the ability to perform value-enhancing activities in a single firm, and these activities increase with ownership, we show that optimizing behavior...

We present a model of agents facing the uncertainty of two future forms of government who are able to insure against this uncertainty by hiding funds from taxation. In order to choose whether or not to hide funds from taxation, agents need to know policy choices that each government would make...

As the amount of money invoiced in a decision rises, so does the burden of making the decision. Thus, it is not surprising or rare that the question arises: should a study be instituted before the decision is made to lessen the risks involved? Of course, such a study will itself cost something...

This paper treats the following problem. How much money should be invested at time t₀ at an interest rate of I for a time T such that the probability of the funds required "K(T)" exceeding those available "X(T)" equals at most p. That is P{K(T) X(T)} < p, where X(T) - X(t₀) exp{ I(T - t₀)}. The parameters I, T,...</p,>

We propose a new procedure to rank portfolio performance. Given a set of N portfolios, we use statistical tests of dominance which produce direct mean-variance comparisons between any two portfolios in the set. These tests yield an NxN matrix of pairwise comparisons. A ranking function maps the...