Finance theory dictates that an investor does not get paid for "diversifiable" risk. You do not get paid for idiosyncratic…
Negative Prices Oil prices for the prompt future traded negative this week. Matt Levine covered it well all week, I…
With all the market chaos, a bunch of friends, most of them outside the field of finance, have dove into…
Fees Are In Focus Retail Giant fund manager/brokerages like Vanguard and Fidelity have made fees front and center. Like Walmart,…
You would need to be living under a rock to not know about the importance of small probabilities on asset…
I recently described markets as biology not physics in recognition of how players adapt. Let's discover 2 more opaque examples and their causes.…
Since the 1980s, there has been a tradition of Wall Street luring physicists from academia. Option math has more in…
The equity risk premium, or ERP, is defined as the excess return you get for investing in stocks over the…
Randomness In Momentum Everywhere (Link) This post from Breakingthemarket.com contends that randomness and rebalancing undoubtedly explain SOME of the findings…
Takeaways from Diversification, Volatility, and Surprising Alpha by Fernholz et al. (Link) Summary It has been widely observed that capitalization-weighted…