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Full-Text Articles in Business
Macro Disagreement And The Cross-Section Of Stock Returns, Frank Weikai Li
Macro Disagreement And The Cross-Section Of Stock Returns, Frank Weikai Li
Research Collection Lee Kong Chian School Of Business
This paper examines the effects of macro-level disagreement on the cross-section of stock returns. Using forecast dispersion measure from Survey of Professional Forecasters database, I find that when forecast dispersion on macroeconomic factor is high, stocks that have high loadings on that factor earn lower future returns relative to stocks with low loadings and vice versa. This negative relationship between risk premium of macro-factors and macro-level disagreement is robust and exists for a large set of macroeconomic risk factors. These findings are consistent with the model of Hong and Sraer (2015), where high beta stocks are more prone to speculative …
In Equations We Trust? Formula Learning Effects On The Exponential Growth Bias, Bryan Foltice, Thomas Langer
In Equations We Trust? Formula Learning Effects On The Exponential Growth Bias, Bryan Foltice, Thomas Langer
Bryan Foltice
This paper evaluates the possible benefits and drawbacks of the formal formula learning of compound growth as it pertains to eliminating, or at least reducing, the exponential growth bias in various household savings and debt decisions. In our main experimental study, we determine if the ability to calculate the simple compound savings formula only assists in its direct area of application with an available calculator, or if this knowledge extends into similar exponentially-based savings and debt decisions when either a calculator is prohibited or when the formula is unknown. In the process of tackling this research question, we develop a …
In Equations We Trust? Formula Learning Effects On The Exponential Growth Bias, Bryan Foltice, Thomas Langer
In Equations We Trust? Formula Learning Effects On The Exponential Growth Bias, Bryan Foltice, Thomas Langer
Scholarship and Professional Work - Business
This paper evaluates the possible benefits and drawbacks of the formal formula learning of compound growth as it pertains to eliminating, or at least reducing, the exponential growth bias in various household savings and debt decisions. In our main experimental study, we determine if the ability to calculate the simple compound savings formula only assists in its direct area of application with an available calculator, or if this knowledge extends into similar exponentially-based savings and debt decisions when either a calculator is prohibited or when the formula is unknown. In the process of tackling this research question, we develop a …
Testing The Predictive Power Of Equity Valuation Metrics: A Minskyian Approach, Mohd Ahnaf Habib Khan
Testing The Predictive Power Of Equity Valuation Metrics: A Minskyian Approach, Mohd Ahnaf Habib Khan
Senior Projects Spring 2016
Valuation process is at the core of finance. There are several methods that can be used to value a stock. Analysts, due to constraints in time, choose between a few metrics to obtain a target price for the stock. In this paper we analyze the predictive power of different valuation metrics when used to predict the S\&P 500. We do so by first presenting theoretical discussions about the financial markets. The case that EMH is not a good model for finance and that behavioral finance, though useful, does not create a complete picture. Mainstream investment theories presented by Neoclassicals and …