An efficient market is thought to be desirable by many legislators, regulators, and academicians. At the same time, they seem adamant that the investment industry unbundle. These two positions are at odds unless it is proposed that investment research be subsidized. Regulators who insist on...

Upside and downside capture ratios are used to assess the quality of investment managers and investment strategies. We propose a simple theoretical model which predicts that the upside capture ratio is an increasing function of the measurement interval length and that the downside capture ratio...

Many investors occasionally receive what they believe to be nonpublic information about a security. Others feel that by applying superior analytical skills to public information, they are able to arrive at valuable insights that are not generally appreciated. In either case, there is a...

The traditional dividend discount model is irrelevant for financial analysts. It requires them to forecast an infinite stream of dividends. Most of the present value is due to the forecast dividends far in the future. This part of the forecast is highly uncertain; hence nobody takes the forecast...