Reading...
Play button
Play button
Use LEFT and RIGHT arrow keys to navigate between flashcards;
Use UP and DOWN arrow keys to flip the card;
H to show hint;
A reads text to speech;
12 Cards in this Set
- Front
- Back
|
Huravy & Nussair
|
Bubbles, relation of shorting to their existence
|
|
|
Duffie et al.
|
shorting raises prices by making assets more valuable (a new function: short-term lending to shorters)
|
|
|
Alexander David
|
Heterogeneous beliefs (i.e. conflicting pricing strategies) create a risk (of speculative shifts) that washes in the aggregate. The equity premium puzzle arises as a failure to observe the trees for the forest.
|
|
|
Masahiro Watanabe
|
Overlapping generations showing price variation using asymmetry of information and heterogeneous trading strategies (trend-followers and contrarians)
|
|
|
Burton Malkiel
|
EMH; efficiency: returns come from risk; no robust strategy for beating the market, especially after publication.
|
|
|
Shiller
|
Behavioral; surveys dev. of behavioral finance; responds to Eugene Fama's 2 pts (anomalies wash [does not mean they arent going on], tend to disappear [not volatility])
|
|
|
Black (noise definitions)
|
Noise, to mean: not-information, cause of observation imperfection, arbitrary element in expectations, information that hasn't arrived yet, changing relative prices (international model).
|
|
|
Black (general)
|
Noise begets trading; efficiency = w/in a factor of 2
|
|
|
Hirshleifer et al.
|
Irrational investors have real effect on cash flows, creating the opportunity for greater profit than a rational investor. Because irrational investors "get" irrational investors, they have a leg up on the above hypothetical possibilities.
|
|
|
Haruvy and Noussair (questions)
|
Shorting 1) lower prices relative to fundamentals, 2) bring prices in line with fundamentals? Concl.: lower prices, but not tracking with fundamentals.
|
|
|
Duffie et al.
|
Presence of shorting can raise prices, i.e. demand predicated on an asset losing value can lead to that asset gaining value. Depends on discrepancy in optimistic/pessimistic investors
|
|
|
Shiller definition
|
EMH states: market Pt = E(P*t) conditional on all available information, given P*t is the actual present value of future cash flows. (Optimal forecast determines price) ; attacks semi-strong
|
