On the Insignificant Cross-Sectional Risk-Return Relationship

On the Insignificant Cross-Sectional Risk-Return Relationship

In their paper, “On the Cross-sectional Relation between Expected Returns and Betas”, Roll and Ross (1994) demonstrated that the expected returns and betas can have zero relationship even when the underlying market portfolio proxies are nearby the efficient frontier. In this note, we provide the mathematical details that lead to their conclusion and further show that their claim needs not hold ...

A Note on the Interpretation of Cross-Sectional Evidence Against the Beta-Expected Return Relationship

The relationship between Structural risk and Expected return of sukuk

Sukuk is the most important Islamic financial securities designed based on Islamic laws, and the relationship between risk and return is the most basic concept in Islamic finance. The results of examining and comparing the similarities between bonds and sukuk show that the most important difference between these two financing tools is the type of asset backed by sukuk and the type of asset cont...

Are the Chinese Really More Risk Averse? A Cross-Cultural Comparison of the Risk-Return Relationship

Bowman’s risk-return paradox (1980) suggests that the management’s attitude towards risks and returns changes according to the company’s situation. This paper intends to compare different cultural backgrounds in the context of the same political and economic environments, as well as the same market benchmarks, in order to examine whether Western and Chinese management teams demonstrate the same...

The Relationship between Snacking and Risk of Individual Components of Metabolic Syndrome in Normal-weight Adults: A Cross-sectional Study

Background: Developing obesity-related metabolic disturbances in spite of having normal weight is increasing in normal-weight people worldwide. This study aimed to evaluate the relationship between different types of snacking and risk of individual components of metabolic syndrome (MetS) in normal-weight adults. Methods: This cross-sectional study was carried out on a randomized sample of 328 n...