We study the behavior of the optimal portfolio policy of a long-run investor in markets with stationary investment opportunity sets. We provide conditions on the utility function, for large wealth levels, which are sufficient for the optimal portfolio policy to approximate, as the trading horizon becomes very long, the policy of investing a constant proportion of wealth in the various assets. T...

A fund’s performance is usually compared to the performance of an index or other funds. If a fund trails the benchmark, the fund manager is often replaced. We argue that this may lead to excessive risk-taking if fund managers differ in ability and have the opportunity to take excessive risk. To match the benchmark, fund managers may increase the risk of their portfolio even if this decreases th...

Credit risk is an important issue of current research in finance. While there is a lot of work on modelling credit risk and on valuing credit derivatives there is no work on continuous-time portfolio optimization with defautable securities. Therefore, in this paper we solve investment problems with defautable bonds and stocks. Besides, our approach can be applied to portfolio problems, where th...

A model is proposed that relates opportunity recognition to pattern recognition—the process through which individuals perceive emergent patterns among seemingly unrelated stimuli or events. This model suggests that because of their unique knowledge structures (e.g., prototypes, exemplars), specific persons perceive patterns among emerging changes in technology, markets, demographics, etc. that ...

In recent times, the European Union’s external engagement has expanded in originally internal policy areas. This process is particularly intriguing areas where EU possesses only supplementary competences. Examining case of higher education policy, this contribution sets out to understand and explain such To end, it employs an explanatory framework that argues action emerges when a structural wi...