Peters (2011) claims to provide a resolution of the three century old St. Petersburg paradox by using time averages and thereby avoiding the use of utility theory completely. Peters also claims to have found an error in Menger (1934, 1967) who established the vulnerability of any unbounded...

Recent empirical evidence from different markets suggests that the security market line is flatter than posited by CAPM. This flatness implies that a portfolio long in low-beta assets and short in high-beta assets would earn positive returns. Frazzini and Pedersen (2014) conceptualize a BAB...

We use the Indian stock options market to study the evolution of uncertainty and asymmetric uncertainty around earnings announcements (EAs). We find that uncertainty (implied volatility) and asymmetric uncertainty (options skew) increase monotonically before the EA day and decrease after EA....