How to optimize returns of an international equity or bond portfolio? Which bets should we make between bonds and stocks on a domestic balanced portfolio? Access to capital markets has become increasingly easier for investors. In this context, the Tactical Asset Allocation (TAA), which refers to how a portfolio's funds would be allocated, given the investor's short-term forecasts, is an essenti...

This study examines the joint effect of disclosed measurement information and investor mindset on investors' judgments of estimate precision and firm value. Consistent with psychology theory, results reveal that short horizon investors adopt a relatively concrete mindset and long horizon investors adopt a relatively abstract mindset. As a consequence, disclosing that the fair value of an impair...

I consider a model in which an asset owner must decide how much to invest in his asset mindful of the fact that an encroacher’s valuation of the asset is increasing in the asset owner’s investment. Due to incomplete property rights, the encroacher and asset owner engage in a contest over the control of the asset after investment has taken place. A standard result is that the asset owner will un...

The Geske-Johnson approach provides an e cient and intuitively appealing technique for the valuation and hedging of American-style contingent claims. Here, we generalize their approach to a stochastic-interest-rate economy. The method is implemented using options exercisable on one of a nite number of dates. We illustrate how the value of an American-style option increases with interest-rate vo...