Big Bank Profits Can Spell Big Risks Ahead
Return on equity measures bank risk in a way that’s simpler and more robust than complex regulatory models.
Big Bank Profits Can Spell Big Risks AheadWhy the carry trade is not just for currencies
Applying the practice to a diversified portfolio results in much-improved returns.
Investors can use carry to compare return predictors that were previously difficult to weigh against each other.
Ralph S.J. Koijen, Tobias J. Moskowitz, Lasse Heje Pedersen, and Evert B. Vrugt, “Carry,” Working paper, August 2013.
Return on equity measures bank risk in a way that’s simpler and more robust than complex regulatory models.
Big Bank Profits Can Spell Big Risks AheadMost consumers support ‘private sanctions’—even if it costs them money.
On Russian Aggression, Americans Want Companies to Vote with Their FeetResearch suggests HFT winners gain billions of dollars per year at the expense of other participants in global stock markets.
How to Calculate How Much High-Frequency Trading Costs InvestorsYour Privacy
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