In this article, we will analyze Financial and Economic decisions that were not linked to the Orthodox Christianity and have created high risk premium to the Greek economy to pay debts. The accumulation of debts over the period 1990 to 2016 has created a weak job market that lack incentives and...

In this article, we use a virtual example of currencies portfolio by implying hedgers, arbitrageurs and speculators and how to balance their emotions based on the Greek Christian Orthodox approach. Arbitrageurs or rational investors would open a short position to the system of expensive...

In this article, we analyse and compare the yield curve risk of interest rates. Our evidence is from the Swedish futures market based on 3 and 6 month Eurodollar futures contract. The shape of the yield curve can be upward, flat and downward. But what is a yield curve? It is a line that shows...

In this article, we analyse the swan diagram in terms of surplus or deficit, inflationary or deflationary pressures and propose a new diagram based on the Orthodox approach. The balance of payment is recording a deficit or a surplus. A deficit is when debits exceed credits in the main accounts....

In this article, we apply interest rate parity, IRP, between two currencies EURO/USD to determine the implied currency appreciation or depreciation of an interest rate forward futures contract. Exchange rate risk is related to the appreciation or the depreciation of a currency relevant to...

In this article, we test a linear Gaussian space model and the Kalman filter ARMA(2,4) model to estimate logarithmic monthly returns of UK general and life insurance companies. This fact motivates us to use state space model that will reveal to us the final one – step ahead values of the...

In this article, we investigate futures reverse cash and carry arbitrage of USD currency futures. Arbitrageurs or rational investors would open a short position to the system of expensive currencies portfolio and simultaneously purchase the same or very similar spot exchange rate portfolio at a...

In this article, we apply a logit and probit regression to test high water marks, incentive fees and lock-up periods of emerging hedge funds category. Emerging markets hedge funds invests primarily in countries that have a closed market economy and are in the process of developing and expanding...

In this article, we examine Wald test on the VAR coefficients of the 1,3 and 6 months Eurodollar deposits. The purpose of using the Wald test on the VAR coefficients of the 1,3 and 6 months Eurodollar deposits is to help the arbitrageurs to craft their investment strategy in terms of buying,...

In this article, we analyze active management based on active return, active risk and information ratio based on the Swedish option market. Active return is the difference in returns between a portfolio and the index or benchmark that is measured. Active risk or tracking error is the standard...