Say you’re about to launch a music artist’s new album. Is there any way to predict how well it will sell, or how soon the album’s single will hit the charts?
Companies in both the... Read More
Managers at public companies are under immense pressure to meet analysts’ forecasts of earnings. These pressures, combined with vague accounting standards, can give companies opportunities to... Read More
In the aftermath of the subprime mortgage crisis, many people are wary of securitization—the bundling and selling of loans to investors—assuming that the problems associated with... Read More
Historical stock market returns are predictable using the average level of "idiosyncratic volatility," which is the volatility of the return of a stock that is not correlated with the overall market... Read More