Wednesday, 17 January 2018

Uncovering decades of questionable investments

(University of Texas at Austin, Texas Advanced Computing Center) Researchers used the Wrangler supercomputer at the Texas Advanced Computing Center to uncover the root cause of the 'beta anomaly' -- a discrepancy between the expected return on high-risk assets and their actual return. The team found that investors who are attracted to the lottery-like characteristics of these stocks push their prices higher than theory would predict, thereby lowering their future returns.

from EurekAlert! - Social and Behavioral Science http://ift.tt/2mQyUgY

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