Ever wondered if your investment strategy is truly the best among many options? A clever test, called the intersection-union test, helps answer this question. This test compares the Sharpe ratio of your chosen investment strategy with others. Unlike other tests, it considers the fact that investment
Ever wondered how trading strategies are designed to never run out of cash? That’s where self-financing comes in! It’s a clever concept that blends math and money. Back in the late '70s, two smart guys, Harrison and Kreps, first introduced this idea. Later, Harrison and Pliska broadened it, making i
Let's talk about an interesting mix: weather forecasting and financial tools. You might be wondering why these two seemingly different worlds would ever meet. Well, there's a connection that's not just fascinating but also a bit complex. First, let's chat about weather derivatives. These are like i
Belarusian banks are taking a big step forward by adopting international financial reporting standards. This shift involves a careful look at how banks account for loans and conditional obligations. The main guidelines they're following are the International Financial Reporting Standards (IFRS) 9 an
Nobel laureate Paul Krugman was not a fan of cryptocurrencies back in 2019. He saw their future as dim. But even he couldn't deny that cryptocurrencies are big players today. They've changed how we think about money and finance. Governments are watching closely, trying to keep up with these digital
Cryptocurrencies, often seen as a means of exchange, don't really fit the bill. Instead, they're more like crypto assets, known for their wild price swings. If you're an investor looking to smooth out the bumps in your crypto asset portfolio, you can do so by creating an optimal mix using standard t
Bitcoin, often abbreviated as BTC, has been on quite the ride. Its price recently hit an all-time high. Some traders are thinking big, with targets set at $100, 000. But hold on, there might be a bit of a pause before that happens, say some analysts. The excitement comes from President-elect Trump's
Want to know how ESG disclosure influences a company's intangible capital? Let's dive in! Picture this: when a company starts investing in ESG, they see a boost in their intangible assets. These are things like brand reputation and goodwill that you can't touch, but they matter big time. At first, t
Supply chain financing is hot stuff in the business world. It helps grease the wheels of commerce by unlocking capital stuck in the supply chain. Think of it as a financial lubricant, making everything run smoother. Blockchain, with its superpowers like tamper-proof data and secure contracts, is a p
Behavioral finance often criticizes rational finance for not being able to explain certain weird things in the stock market, like why prices seem to follow patterns and why stocks are so risky compared to bonds. But hold on, says this paper. Maybe we don't need to blame people's weird behaviors just
