What Explains the Volatility in Financial Markets?
How the inelastic markets hypothesis makes sense of seemingly inexplicable price movement
What Explains the Volatility in Financial Markets?Why the carry trade is not just for currencies
Applying the practice to a diversified portfolio results in much-improved returns.
Investors can use carry to compare return predictors that were previously difficult to weigh against each other.
Ralph S.J. Koijen, Tobias J. Moskowitz, Lasse Heje Pedersen, and Evert B. Vrugt, “Carry,” Working paper, August 2013.
How the inelastic markets hypothesis makes sense of seemingly inexplicable price movement
What Explains the Volatility in Financial Markets?Chicago Booth’s Raghuram G. Rajan joins hosts Bethany McLean and Luigi Zingales to explore risks in the financial system and possible solutions.
Capitalisn’t: Why the Banking Crisis Isn’t OverWhen investors receive dividends, they often use the cash to buy more shares of stock—and not necessarily of the company that issued the dividend.
Dividend Payouts Lead to Stock-Price BumpsYour Privacy
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