This study aims to test the explanatory power of Fama and French three factor model (1993) in explaining cross-sectional average return for Pakistan¡¯s equity market for the time frame of 10 years from 2004-2014. The sample includes firms that traded on KSE-100 index from 2004-2014. Six...

This study tests possible sources of long-term risk-adjusted returns on initial public offerings (IPO) in Poland under the calendar-time portfolio (CTP) approach. The moment of going public still remains a puzzle in many areas. Poland’s status as an emerging market has been indisputable for...

In this paper we address three main objections of behavioral finance to the theory of rational finance, considered as “anomalies” the theory of rational finance cannot explain: (i) Predictability of asset returns; (ii) The Equity Premium; (iii) The Volatility Puzzle. We offer resolutions of...