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A Model of Capital and Crises Zhiguo He Arvind Krishnamurthy May 2011
A Model of Capital and Crises Zhiguo He Arvind Krishnamurthy May 2011

... The asset market is modeled along the lines of Lucas (1978). There is a risky asset producing an exogenous but risky dividend stream. The specialists can invest in the risky asset directly, but the household cannot. There is also a riskless bond in which all agents can invest. We use our model to co ...
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... the cash to make loans to other participants (both households and businesses) Mutual Fund Firm: Pooling Funds of individuals and uses them to buy a portfolio of securities ...
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... & Distribution Leader for Latin America at XL Group, has called on Ferma and national European associations to help develop risk management in Latin America and boost standards in the region. Speaking at Commercial Risk Europe’s Managing Global Programmes Risk Frontiers seminar in Madrid, Mr San Jua ...
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... Statements included by the Colruyt Group in this annual report as well as references to this annual report in other written or verbal statements by the group which concern future expectations in respect of Colruyt group activities, events and strategic developments are forecasts and as such entail r ...
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the fragile capital structure of hedge funds and the
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... much less leverage than investment banks. Hedge funds also tended to hold higher levels of cash balances and more liquid securities in their portfolios than investment banks. During the crisis, hedge funds reduced their exposures drastically and quickly. We argue that the di¤erences in investment an ...
Timing “Smart Beta” Strategies? Of Course! Buy Low, Sell High!
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... throughout the finance community.2 For some factors, such as low beta, we show that most or all past performance was revaluation alpha, which could easily reverse from current valuation levels. For smart beta strategies, the picture is a bit better: most established products have respectable structu ...
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... promulgated.2 Further, the growth of derivatives activity has also increased awareness of risk exposures generally, and contributed to the development of more formal methods of risk assessment, such as Value-at-Risk (VaR). Indeed, the Bank for International Settlements (BIS) has suggested regulator ...
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... to more risks than those for which calculations are specified. Consequently, the minimum Total Ratio for life insurers is set at 120% rather than 100% to cover operational risks that are not explicitly measured, but which form part of the minimum requirement under MCCSR/TAAM. In addition, OSFI has e ...
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... Benser’s profitability, as measured by the amount of income available for each share of common stock, increased by 33 percent (($1.29 – $0.97)/$0.97) during 2014. Earnings per share should not be compared across companies because the number of shares issued by companies varies widely. Thus, we canno ...
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... The consolidated financial statements include the accounts of the Bancorp and its subsidiaries (collectively, the “Corporation” or “Washington Trust”). All significant intercompany transactions have been eliminated. Certain previously reported amounts have been reclassified to conform to current yea ...
The Impact of Market Sentiment Index on Stock
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... that investor sentiment has a significant correlation and relationship with co-movements of stock returns with high retail investor concentration. However, based on the regression analysis, the findings indicated that investor sentiment influences the movement of stock prices and, in turn, affects t ...
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Business valuation

Business valuation is a process and a set of procedures used to estimate the economic value of an owner’s interest in a business. Valuation is used by financial market participants to determine the price they are willing to pay or receive to effect a sale of a business. In addition to estimating the selling price of a business, the same valuation tools are often used by business appraisers to resolve disputes related to estate and gift taxation, divorce litigation, allocate business purchase price among business assets, establish a formula for estimating the value of partners' ownership interest for buy-sell agreements, and many other business and legal purposes such as in shareholders deadlock, divorce litigation and estate contest. In some cases, the court would appoint a forensic accountant as the joint expert doing the business valuation.
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