What Explains the Volatility in Financial Markets?
How the inelastic markets hypothesis makes sense of seemingly inexplicable price movement
What Explains the Volatility in Financial Markets?How investors cope with losses
Rolling a losing position into a new stock can dull the pain of losing money.
Investors who have rolled proceeds from an investment into a new asset tend to use the amount paid for the original investment as a reference point to compute gains and losses for the new asset.
Cary D. Frydman, Samuel Hartzmark, and David H. Solomon, “Rolling Mental Accounts,” Working paper, November 2015.
How the inelastic markets hypothesis makes sense of seemingly inexplicable price movement
What Explains the Volatility in Financial Markets?In a study, the bot cut fat from corporate disclosures to provide effective summaries.
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