Market Efficiency
α – Alpha, or Abnormal Return
This coefficient is used to measure the efficiency of an active trader. If a fund generates a higher return than predicted by CAPM, then it’s considered a good […]
Archive
Category: [:en]Investor Psychology[:]
Market Efficiency
Cyclicals
Why Should We Avoid Investing in “Cyclicals” (As Peter Lynch Calls Them) and How to Identify Such Companies? The graph below presents two companies. As you can see, […]
Market Efficiency
Bitcoin
Is Bitcoin Really an Asset Worth Rational Investment? Bitcoin can indeed be an asset that might accidentally make you rich, but is it worth rational investment? Bitcoin is […]
Market Efficiency
Illusion of Money
The Modigliani-Cohn Hypothesis is a significant model that describes the nonrational behavior of asset pricing and its impact on the Equity Risk Premium. According to the model, investors […]
Market Efficiency
Profitability of High-Risk Actives
The profitability illusion of high-risk actives: https://www.investopedia.com/ask/answers/06/geometricmean.asp
Market Efficiency
The Small-Cap Premium
The small-cap premium (if such a thing exists) typically peaks in January… It’s unexpected, but still… Equity Risk Premiums (ERP): Determinants, Estimation, and Implications – The 2022 Edition […]
Market Efficiency
The Globalization of Risk
Source:Equity Risk Premiums (ERP): Determinants, Estimation, and Implications – The 2022 Edition Updated: March 23, 2022, Aswath Damodaran; Stern School of Business