The paper is an empirical research work wherein the principle of Modern Portfolio Theory along with aspects of geographical diversification have been subjected to test. The validation of the said theory has been made via hypothesis testing in light of the financial market data. The paper has...

The main goal of this paper is to better understand the behavior of credit spreads in the past and the potential risk of unexpected future credit spread changes. One important consideration to note regarding credit spreads is the fact that bond spreads contain a liquidity premium, which...

In this paper we propose a new algorithm for pairs trading. Pairs Trading is a very popular trading strategy also known as market neutral position. The basic idea is to create a long/short position with securities that move together. Securities having strong co-relation (We propose correlation...

The increase in income inequality in many countries, apparently due to a greater relative increase in upper incomes, has become a public policy concern. This paper shows that the standard Gini index underestimates the rate of increase in inequality because a shift of income towards the top...

Probability and statistics are powerful weapons that can help people make good decisions, but that can also be used to wreak havoc. This paper is the first in a series designed to provide examples to students of how statistics can be used and misused to mislead the public and result in poor...

Evidence is mounting that the United States is losing its edge as a world leader when it comes to educating its citizens. It now ranks 13th in college graduation rates. In a recent 24-country Survey of Adult Skills, the U.S. ranked 16th in literary proficiency and 21st in numeracy proficiency....

Business is a very popular major today. Numerous articles have been written attacking the business major claiming that it is not rigorous enough and does not teach what it purports to do, especially in areas such as ethics. This paper discusses some of the issues with business as a major and...