An asset allocation puzzle

Article Abstract:

Popular advice of financial advisors on portfolio allocation contradict predictions of textbook mutual-fund separation theorem. Data from popular advice on recommended allocations among stocks, bonds, and cash are similar in that they show the ratio of bonds to stocks decreases as the investor becomes more willing to take on risks. The reasons behind the deviation of popular advice within a rational model are difficult to explain but may be explained through the use of nonstandard preferences in future research.

Asset & Risk Management, Econometrics & Model Building, Portfolio management, Risk (Economics), Econometrics, Capital assets pricing model, Capital asset pricing model, Business models

---

International measures of schooling years and schooling quality

Article Abstract:

Data on educational attainment in several countries are presented and evaluated to determine quality and quantity of schooling for individuals aged 25 and above. The countries are divided into developing countries, centrally planned economies (CPEs) and Organization for Economic Cooperation and Development (OECD) countries. The figures show a trend towards equal educational opportunities in almost all regions and better schooling opportunities in OECD and CPEs compared to developing countries.

Statistics, Education, Higher, Higher education, Education, Secondary, Secondary education, Educational equalization, Equal education, Education, Primary, Primary education, Educational statistics

---

Capital mobility in neoclassical models of growth

Article Abstract:

Convergence occurs in a neoclassical growth model when capital includes human investments. There would be slow diminishing returns to capital and differences in variables such as government policies could cause differences in steady-state positions. Higher rates of convergence are predicted in an open economy of this theory. It is shown that the open-economy model is consistent with the evidence if the economy can finance a portion of its capital by borrowing.

Economic development, Capital, Convergence (Mathematics)

Similar abstracts:

• Abstracts: Exchange rate regime, volatility and international correlations on bond and stock markets. Are there rational bubbles in foreign exchange markets? Evidence from an alternative test
• Abstracts: The Fisher effect: reprise. Who pays for fiscal expansion? Distributional effects of fiscal spending in a small open economy with foreign capital
• Abstracts: Employment and the introduction of a minimum wage in Britain. Taking care of business: executive compensation in the United Kingdom
• Abstracts: Overview - small business optimism. part 2

This website is not affiliated with document authors or copyright owners. This page is provided for informational purposes only. Unintentional errors are possible.