What is the best way to incorporate a risk premium into the discount rate schedule for a real investment project with uncertain payo¤s? The standard CAPM formula suggests a beta-weighted average of the return on a safe investment and the mean return on an economy-wide representative risky investment. Suppose, though, that the project constitutes a tail-hedged investment, meaning that it is expe...

This paper compares the effects of exchange rate movements on the risk/return characteristics of direct investment property assets for non-domestic investors with particular emphasis on economic and translation risk. The correspondence between four property markets (US, UK, Canada, and Australia) and the appropriate exchange rates are examined in order to analyse the pattern and temporal stabil...

Abstract: Financial investment has become an important issue, there are many trading strategies and parameters based on quantitative models, this paper use neural network algorithm to optimization strategy parameters, various combinations of optimization strategies, as well as the evolution of new strategies to generate better returns. The empirical results show that this method has a stable an...

JEL Bibliographic Code O15, O18, O47, O53 We postulate that inferior factor productivity in China’s noncoastal provinces is a principal reason for their lower economic growth despite high investment rates relative to coastal provinces. Using the residual from a fixed-effect Solow growth model for the years 1978-93, we find that TFP is roughly twice as high in the coastal provinces. We estimate ...

forthcoming. The Science of Team Science: Why Bother With Return on Investment Analysis?

People can become less cooperative when threatened with sanctions, and previous research suggests both "intentions" and incentives underlie this effect. We report data from an experiment aimed at determining the relative importance of intentions and incentives in producing non-cooperative behavior. Participants play a one-shot investment experiment in pairs. Investors send an amount to trustees...

Can financial integration, particularly the cross-border investments of multinational firms, help explain the synchronization of business cycles? This paper presents evidence on the comovement of returns and investment within U.S. multinational firms to address this question. These firms constitute significant fractions of economic output and investment in most large economies, suggesting that ...

People can become less cooperative when threatened with sanctions, and previous research suggests both "intentions" and incentives underlie this effect. We report data from an experiment aimed at determining the relative importance of intentions and incentives in producing non-cooperative behavior. Participants play a one-shot investment experiment in pairs. Investors send an amount to trustees...