Risk reduction be diversification in the Nordic stock markets
The possibility of risk reduction through international investments in the Nordic markets is examined empirically for the 1970-88 period. The study quantified the risk of domestic equities and the influence of the exchange rate on foreign equity investments. It also investigated the correlation between the Nordic stock markets and their respective volatilities with respect to the ex post efficientfrontier. The results reveal the potential gains that an investor would have acquired from an unhedged and diversified Nordic portfolio.
Publication Name: Scandinavian Journal of Economics
Computationally convenient optimal intertemporal portfolios under linear constraints
The normative question of obtaining computationally convenient optimal intertemporal portfolios with realistic assumptions is investigated. Expected utility of final-period wealth is maximized for each period although possible subjection to linear inequality constraints is maintained. Random net portfolio additions and deterministic evolution of return distributions are allowed. The portfolio problem is shown to be computationally straightforward under certain assumptions.
Publication Name: Journal of Economics and Business
Wealth, weather risk and the composition and profitability of agricultural investments
The role of wealth distribution and rainfall variability in determining the composition of a farmer's agricultural investment portfolio is examined. The study, which used empirical data from rural India, reveals a risk aversion among farmers exposed to higher weather risks. It also highlights the income disparity between rich and poor farmers which is further aggravated by lower production efficiency among the poor farmers who choose less profitable assets.
Publication Name: Economic Journal
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- Abstracts: Information and advertising: the case of fat consumption in the United States. Computing the Impact of Social Security Using the Life Cycle Consumption Function
- Abstracts: An analysis of forecasts of livestock prices. An exploration of earnings whispers forecasts as predictors of stock returns
- Abstracts: Transaction costs and partnerships: the case of the rock bands. Transaction costs, technology transfer, and in-house R&D: a study of the Indian private corporate sector
- Abstracts: Do self-fulfilling expectations of currency devaluation improve the balance of payments. The endogeneity of optimum currency area criteria u lessons from history for European monetary union