We use portfolio theory to quantify the efficiency of state-level sectoral patterns of production in the United States … financial development has important consequences for the efficiency and specialization (or diversification) of investments, in a …

We use portfolio theory to quantify the efficiency of state-level sectoral patterns of production in the United States … that financial development has important consequences for efficiency and specialization (or diversification) of investments …

portfolio diversification, return volatility and contagion. …

assets - and Markowitz - who advocates diversification across assets. We rely on the concepts of ambiguity and ambiguity …

a fund’s portfolio through additional leverage and hedging. First-best spending should be a share of total wealth, and …

and implement tests of hedging that use the information contained in the actual portfolio of the investor. We use a unique …. We show that investors do not engage in hedging, but invest in stocks closely related to their non-financial income. We …

Despite much work on hedging in incomplete markets, the literature still lacks tractable dynamic hedges in plausible … deviate unless she can pre-commit to follow them. We apply our results to the discrete hedging problem of derivatives when … specialized to the Black-Scholes setting. We also generalize our results to richer settings to study dynamic hedging with Poisson …