Recent studies show that volatility-managed equity portfolios realize higher Sharpe ratios than portfolios with a … volatility targeting on the Sharpe ratio is negligible. However, the impact of volatility targeting goes beyond the Sharpe ratio …-tail” events tend to be less severe, as they typically occur at times of elevated volatility, when a target-volatility portfolio …

technological diversification. Production makes use of different input varieties, which are subject to imperfectly correlated shocks …. As in endogenous growth models, technological progress increases the number of varieties, raising average productivity …. In our model, the expansion in the number of varieties provides diversification benefits against variety-specific shocks …

This study investigates the linkage between portfolio investment and economic growth in 18 developed and 27 developing … level. The results of our analysis show that long-term portfolio investment is positively associated with economic growth in … developing countries. Long-term portfolio investment through non-interest-bearing assets contribute more to economic growth in …

sectors, with end effects on state-level volatility. The change cannot be explained simply by shifts in sector-level returns … and volatility. A reallocation effect is at play, which we study in the context of mean-variance portfolio theory applied …

inward FDI contributes to economic volatility in the host country. In this paper, we investigate the FDI-output growth …While existing literature points to a positive impact of FDI on host countries’ growth, little is known about how … volatility nexus focusing on manufacturing sectors of OECD countries over the period 1990 to 2015. We document a positive and …

how it depends on volatility. We describe the dynamic feedback properties of leverage, volatility, and asset prices, in …

relationship between foreign idiosyncratic shocks and domestic economic growth between 1978 and 2000. Contemporaneous changes in … associated with a 0.05-0.26 pp increase in economic growth. Lastly, this can potentially explain the Great Moderation. …