Abstract Multivariate regression models and ANOVA are probably the most frequently applied methods of all statistical analyses. We study the case where the predictors are qualitative variables and the response variable is quantitative. In this case, we propose an alternative to the classic...

We consider the random conductance model where the underlying graph is an infinite supercritical Galton–Watson tree, and the conductances are independent but their distribution may depend on the degree of the incident vertices. We prove that if the mean conductance is finite, there is a...

This paper evaluates numerous diversification strategies as a possible remedy against widespread costly investment mistakes of individual investors. Our results reveal that a very broad range of simple heuristic allocation schemes offers similar diversification gains as well-established or...

We analyze whether the diversification discount is driven by the book value bias of corporate debt. Book values of debt may be a more downward biased proxy of the market value of debt for diversified firms, relative to undiversified firms, as diversification leads to lower firm risk. Thus,...