Andy Yeh’s Reviews > Investors and Markets: Portfolio Choices, Asset Prices, and Investment Advice > Status Update

Defined contribution plans provide the flexibility to allow the better allocation of economic outcomes. These retirement plans do not preclude a person's ability to replicate a defined benefit plan by investing in low-risk investment vehicles during the working years to then purchase an annuity at retirement. The highly risk-averse individuals may seek this route, but others need not do so.

The chance that widespread layoffs will coincide with the bankruptcy of many small and low-priced companies may lead investors to require higher expected returns on the stocks of such companies than would be indicated by their beta values relative to a portfolio of traded equities.

A situation that provides extraordinary returns in most states of the world and disastrous returns in a few states of the world gives rise to what is known as the peso problem.

A situation that provides extraordinary returns in most states of the world and disastrous returns in a few states of the world gives rise to what is known as the peso problem.

In long-run settings, it is possible to create a non-linear return function with a dynamic strategy that follows decision rules for changing asset mixes based on previous returns.

It would be splendid if an investment provided both upside return potential and downside protection.

According to the democratic principle of one vote one value, the median estimate expresses the vox populi, every other estimate can be viewed as too low or too high by a majority of the voters. Some experimental results turn out to be more creditable to the trustworthiness of a democratic judgment than what we might expect.

Differences in the expected returns of securities or portfolios arise only from differences in their covariances with the pricing kernel.