5 Answered Questions for the topic asset pricing

05/18/19

Apply Ito's Lemma to exponential martingale?

05/13/19

Assets, Liabilities, Equity?

I am writing a business plan based on some old notes from a master in economics. However I am I bit confused. Can you please confirm the following is right? (above all what's **marked in... more
Asset Pricing Finance Corporate Finance

04/15/19

How does the Fama and French 3-factor model explain stock covariance?

Does it at all? If so, how?It is understood that size and value play a role in determining returns and there are proposed explanation those these, but what about covariance?

03/19/19

Any major theory/model that considers return due to idiosyncratic risk?

Are there any classical, major theories/models that consider positive return due to idiosyncratic risk? For example, CAPM only considers return due to systemic risk but not idiosyncratic risk. If... more
Asset Pricing Finance

03/18/19

Do the number of days in a month affect monthly return? (seasonality)?

When I see data like monthly return on news or tv, I always find the concept a bit strange, because obviously if you calculate monthly return for February and March, all things being equal, the... more

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