Investment Management - Science topic

In my opinion, investment banks should play a key role in green financing processes, given their strategic importance in capital allocation and their ability to mobilize vast financial resources. The green transformation of the economy, which is necessary to combat climate change and environmental degradation, requires huge financial resources that far exceed the capacity of the public sector. Investment banks, as institutions that manage large investment portfolios and engage in large-scale projects, have a unique ability to support green initiatives by financing renewable energy, sustainable infrastructure and green technology projects. Investment banks have both the potential and the responsibility to become more actively involved in green financing processes. Their activities can play a key role in accelerating the green transformation of the economy, while opening up new investment prospects. However, this requires adequate preparation, an innovative approach to risk management, and close cooperation with the public and private sectors.

I have described the key issues of the green economy transformation issue in the following article:

And what is your opinion on this topic?

What is your opinion on this issue?

Please answer,

I invite everyone to join the discussion,

Thank you very much,

Best regards,

Dariusz Prokopowicz

The literature on the subject is very poor. As a result, many companies use inappropriate methods, which are based on fixed cost sharing.

Within the framework of green investments, including pro-climate, pro-environmental and pro-social projects that increase safety and living conditions for residents of urban agglomerations within the framework of urban plans for adaptation to climate change, i.e. primarily to the progressive process of global warming can implement various measures, within which the creation of additional parks, including large parks and pocket parks, floral meadows, lawns and other green areas, rainwater harvesting ponds, rainwater catchment systems used for watering urban greenery and clearing drainage systems to discharge excess rainwater into rivers, building wastewater treatment plants to purify water in rivers and restore biodivers' natural ecosystems, etc. stand out.

In order to increase the scale of implementation of pro-climate, pro-environmental and pro-social projects to increase the safety and living conditions of urban agglomeration residents, financial support is necessary, which can come from various sources in the framework of external financing. On the one hand, it can be green external financing provided on commercial or semi-commercial terms by financial institutions, including commercial banks and investment funds. On the other hand, it can also be financing under grants from the state's public finance system, grants to cities from the central state budget, or from the public finance system of the local government budget. Financing of municipal pro-climate, pro-environmental and pro-social investments can also be provided through philanthropy implemented by commercially operating companies and enterprises in a particular municipality, city. Besides, the municipality can reconstruct its financial budget on both the revenue and expenditure side with a view to increasing the scale of implementation of pro-climate, pro-environmental and pro-social projects that increase the safety and living conditions of residents of the urban agglomeration.

I am conducting research on this issue. I have included the conclusions of my research in the following article:

I invite you to get acquainted with the issues described in the publications given above and to scientific cooperation in these issues.

In view of the above, I address the following question to the esteemed community of scientists and researchers:

What do you think about this topic?

What is your opinion on this issue?

Please answer,

I invite everyone to join the discussion,

Thank you very much,

Best regards,

Dariusz Prokopowicz

According to the prevailing macroeconomic forecasts, the Polish economy in 2024 and 2025 should be in a trend of improving economic growth rates. In February and March 2024, inflation fell to a low level close to the inflation target. In addition, in the second half of 2023, there was a clear improvement in the residential real estate sector, due to the introduction of a government program to activate the purchase of real estate by citizens on credit, i.e. the “2% Safe Credit” program.” A year ago, the macroeconomic situation in Poland indexically looked much weaker than now. The level of economic growth was lower and was below zero, i.e. there was a recession. This was the second recession since the Covid-19 pandemic, i.e. since 2020, and the first after the end of the pandemic. The recession of the first half of 2023 was due to a decline in the economic activity of companies and businesses, as a result of the various crises that occurred during and after the Covid-19 pandemic. These downturn factors include the pandemic economic crisis with the deep recession of the economy, which occurred mainly during the first wave of the pandemic, i.e. in the spring of 2020. In addition to this, the rapid increase in inflation, which in Poland began from the 2nd quarter of 2021. This growth continued until February 2023, when consumer inflation, according to the Central Statistical Office, reached 18.4 percent. In 2022, Poland experienced a deep energy crisis generated by the increase in fossil fuel prices. The energy crisis was deep in Poland due to the still high share of up to three-fourths of conventional energy sources, i.e. based on burning fossils, mainly coal and lignite, against the background of the overall mix of energy sources. The increase in costs associated with high fossil fuel prices, high energy prices, and more expensive bank loans generated a downturn in the economy in the 2022-2023 period. The increase in interest rates on bank loans, including business loans, investment loans offered to companies and businesses by commercial banks was a derivative of the anti-inflationary raising of interest rates by the central bank, i.e. the National Bank of Poland, which lasted from October 2021 to September 2022. In addition, the changes in the fiscal system carried out in 2022 under the government's Polish Deal program also caused many organizational and financial problems in a significant part of the functioning business entities. In addition, all of the aforementioned crises and the changes applied by the central bank in terms of the monetary policy pursued also negatively affected the PLN exchange rate against other currencies and generated a high amplitude of changes in the PLN exchange rate, which also negatively affected many business entities operating in non-financial sectors of the economy. The increased scale of exchange rate volatility primarily negatively affected enterprises that exported a significant part or most of their production to countries with a different currency. The amount and share in terms of production of products against the economy for such enterprises has increased significantly since 2004, when Poland became a member of the European Union. An important issue confirming the not-so-good economic and financial situation of companies and enterprises in Poland recently is the fact that in 2023 the historically largest scale of declared bankruptcies of business entities and the termination of their activities occurred. All of the above-mentioned issues have negatively affected the operation of many companies and enterprises operating in Poland over the past few years. Currently, in 2024, positive in its content forecasts of macroeconomic developments in the domestic economy determined for the next few quarters prevail. In addition to the currently low inflation and stabilized economic situation, there has recently emerged an important pro-development factor, which is additional subsidies from the European Union. Well, at the end of 2023, previously granted EU subsidies and low-interest loans were unblocked for Poland under a financial program referred to as the National Recovery Plan. Because the funding Poland will receive in the 2024-2025 period from the National Reconstruction Plan program and also funding under the European Union's Cohesion Programs will be historically record high. Consequently, many new investment projects will probably be carried out using this money. In view of the above, the macroeconomic situation is highly complex and presents an ambiguous picture when it comes to diagnosing the sources of the decline in investment.

The key issues of the impact of the Covid-19 pandemic on the economy and financial markets are described in my article below:

In view of the above, I address the following question to the esteemed community of scientists and researchers:

What do you think about this topic?

What is your opinion on this issue?

Please answer,

I invite everyone to join the discussion,

Thank you very much,

Best wishes,

Dariusz Prokopowicz

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The bankruptcy of Silicon Valey Bank and Signatire Bank, i.e. banks operating within the framework of investment banking based on equity investments in securities has resulted in investor anxiety, increased levels of uncertainty in financial markets, including equity markets, securities markets. Once again, the question of the possibility of a repetition of the situation of the global financial crisis of 2007-2009 has resurfaced, with central banks intervening swiftly and efficiently to fully guarantee all deposits and bank deposits above the statutory limits set for deposit guarantee institutions. This raises the debatable question of why, 15 years after the global financial crisis of 2007-2009, there are still cases of large investment banks failing when, moments afterwards, the central bank announces the full guarantee of all bank deposits and bank deposits and without quota limits in each of the remaining functioning banks. And this is what happened moments after Silicon Valey Bank and Signatire Bank declared bankruptcy. In addition to this, another debatable issue arises regarding the potential for an increase in the scale of moral hazard in both the commercial and investment banking community as well as in bank customers, which could lead to a significant increase in the level of acceptable investment, credit, liquidity, debt, etc. risks for many businesses. If this were to happen, the result could be an increase in systemic credit risk in the banking sector, which is hardly the purpose of central banking, but rather the opposite. But, on the other hand, some central banks also carry out financial operations on international financial markets, often making substantial revenues and profits. This raises a third debatable issue, which is to consider the key priorities of central banks' activities in addition to looking after the value of money and the stability of the banking system. The central bank's participation in the process of injecting additional money into the economy through the purchase of treasury bonds and carrying out financial operations in the international financial markets, including the foreign exchange markets and with the use of securities to a significant extent can influence the formation of the national currency exchange rate on the one hand and can be a way to generate profits for the central bank on the other. Obviously, the issue of the stability of financial markets, the security of the banking system, the formation of the value of the currency within a certain range, not allowing too high a level of overcredit for investment processes carried out by various economic entities also operating in non-financial sectors of the economy and not allowing too high a level of systemic credit risk in banking are key priorities. These priorities are legally anchored both in the Constitution, i.e. the Basic Law, and in the legal norms defining the functioning of the central bank. Of course, the high-security banking system thus built does not exempt commercial banks and investment banks from the need to continually improve their credit risk management systems. New information technologies and Industry 4.0 are emerging and are also being implemented into banking. New risk factors that are difficult to predict are emerging, such as the occurrence of the SARS-CoV-2 (Covid-19) coronavirus pandemic in 2020. Situations continue to arise where the optimum levels of credit risk are exceeded with regard to the investment banks' equity investments in securities. Consequently, there is still a high degree of possibility that investment banks operating in the capital markets may permanently lose liquidity as a result of certain investment decisions and the quality of the credit risk management improvement process carried out. Also, the banking supervisory institutions, the institutions supervising the financial system should review the issue of the adequacy of the prudential instruments applied by banks, instruments for controlling credit risk, liquidity risk, debt risk, operational risk, market risk, foreign exchange risk, interest rate risk, cyber risk, etc. in view of the changing reality in which banks and the whole banking system operate. It is therefore necessary, in this regard, for banking supervisory institutions, institutions overseeing the financial system, to carry out a kind of ongoing monitoring of the adequacy of the credit risk management systems applied in banks and other risk categories, in order to continually answer the question of whether these systems have become obsolete in the context of the technological progress taking place and the emergence of new risk factors not previously known or not previously present on a large scale in the banks' environment or occurring in their customers. Therefore, both the financial supervisory institutions and the risk management departments of commercial banks, deposit and credit banks and investment banks are once again reviewing the adequacy of the applied prudential and risk control instruments, procedures and credit risk management systems in relation to the situation of the growth of investment and other risks, the possibility of a deepening of the downturn in the economy, in the reality of high inflation, high interest rates, the possibility of stagflation.

In view of the above, I address the following question to the esteemed community of scientists and researchers:

What do you think about this subject?

What is your opinion on this subject?

Please respond,

I invite you all to discuss,

Thank you very much,

Warm regards,

Dariusz Prokopowicz

When, in March 2020, following the WHO's declaration of a global epidemic or pandemic, there was a panic sell-off of investment assets on the capital markets and the risk of a deep, double-digit recession of the economy emerged, central banks cut interest rates and the governments of some countries launched financial assistance programmes on a record scale, consisting of non-refundable financial subsidies for commercially operating companies and enterprises in various sectors of the economy, refinancing of fixed costs of economic activity, deferral of payments of contributions to the social security system, tax reductions, etc., the state's financial resources for these large assistance programmes will be used to finance the crisis. The state drew its financial resources for these large financial aid programmes from additional issues of treasury bonds, which were purchased by commercial banks, investment banks, enterprises, citizens and in some countries, such as Poland, mainly by the central bank. Additional, huge amounts of money introduced into the economy without being covered by manufactured products and services, as predicted in mid-2020, generated a strong increase in inflation on the basis of an increase in the prices of raw materials, products and services, which began almost at the beginning of 2021. Additional large amounts of money without coverage in economic goods in some countries such as Poland were introduced into the economy outside the budget, i.e. by transferring this additional money to special purpose funds created for this purpose functioning in institutional government agencies bypassing the state budget. These institutions distributed this money in the form of mainly non-refundable subsidies to companies and enterprises, some of which did not function because they were temporarily in lockdowns introduced by the government. During the 2020 pandemic economic crisis, therefore, interventionist, historically large bailout programmes based on so-called Crisis Shields were applied, and in some countries mainly on the basis of issuing and selling to commercial banks, companies and citizens additional Treasury bond issues. Many banks purchased these treasury bonds in large quantities when, prior to the pandemic, inflation and interest rates were much lower than in the 2021 - 2023 period. During the 2020 pandemic, central banks further reduced interest rates to interventionist low levels. Some commercial and investment banks, with the economic downturn and recession deepening during the pandemic, bought government bonds treating these instruments as safe assets during the economic crisis and as they reduced the scale of their lending and/or investments in securities generating higher levels of investment and credit risk such as shares issued by listed companies due to the recession of the economy. However, when central banks started a cycle of interest rate increases from 2021 and 2022 onwards, then the prices of previously issued government bonds with lower interest rates on stock exchanges began to fall, as these securities lost their previous attractiveness. At that point, rating agencies began to downgrade the ratings of banks that had previously purchased large volumes of previously issued sovereign bonds with significantly lower interest rates, in view of the average market interest rate levels already prevailing from 2022 onwards, then the problem was recognised. This problem was the potential insolvency and large financial losses of these banks. However, when analysed on a macroeconomic level, the problem is now much broader. Well, public debts have increased strongly in many countries after the pandemic economic crisis of 2020. The increase in inflation already predicted from mid-2020, which started to materialise from 2021, caused central banks to raise interest rates. On the one hand, some investment banks like Silicon Valey Bank and Signature Bank, which had invested a large part of their funds in government bonds just before the cornovirus pandemic at several times lower oproc. levels for these financial instruments, generated large financial losses and collapsed. On the other hand, thanks to high inflation, the real value of public debt in many countries is falling.

In view of the above, I address the following question to the esteemed community of scientists and researchers:

What do you think about this topic?

What is your opinion on this subject?

Please respond,

I invite you all to discuss,

Thank you very much,

Warm regards,

Dariusz Prokopowicz

In recent years, there has been a rapid development of cryptocurrencies and their applications in online payments and settlements and their treatment as alternative investment instruments. Internet-based trading platforms are being developed, where speculative trading and investment using cryptocurrencies is expanding. Some investment banks, internationally operating corporations, social media sites are creating their own cryptocurrencies. Some investment funds have been investing part of their active funds in selected cryptocurrencies for many years. However, due to the lack of a developed institutional oversight system for transactions, payments and investments using cryptocurrencies. Consequently, speculative financial operations and investment transactions carried out on online trading platforms are characterised by a high level of investment risk. Consequently, it is important to build a risk management system for investing in cryptocurrencies.

In view of the above, I address the following question to the esteemed community of researchers and scientists:

What do you think about this topic?

What is your opinion on this subject?

Please respond,

I invite you all to discuss,

Thank you very much,

Best wishes,

Dariusz Prokopowicz

What are the best policies to encourage partnership between the public and private sectors in the field of investment, and how can these policies be profitable for all parties?

Already at least several commercial banks have created their own cryptocurrencies. Some investment funds invest part of their assets in selected cryptocurrencies. Recently, the investment bank JP Morgan has created its own cryptocurrency JPM Coin. Cryptocurrency JPM Coin will be used to settle initially a small part of the transaction, which JP Morgan performs on a daily basis for a total of about USD 6 billion.

Thanks to JPM Coin, settlements between business partners should take place immediately, ie much faster than the current standards of transfers. However, apart from accelerating the time of the transaction, what are the other goals for banks to introduce their own cryptocurrencies?

Could investment banks create a new type of collateral for transactions in the event of a possible strong loss of the USD dollar in the event of another global financial crisis connected with the currency crisis? Such a risk exists if the problem of growing public debt in the US is not resolved and banks in China cease to buy US Treasury bonds.

Do you agree with my opinion on this matter?

In view of the above, I am asking you the following question:

Please reply

I invite you to the discussion

Thank you very much

Best wishes

How does one make their marketing mix be more agile to new channels, ever changing environment. what are the models used for this analysis and their interpretation.

our paper on MMM- complex models and interpretations to discuss the advertising effects, models- simple and complex to collate it all together.

Please read, review and suggest how we can add on to enhance our research going forward

Kindly share your experiences if you have any idea and experience regarding bitcoin.

Thanks

Do you know scientific publications describing the methodologies of the analysis of development potential and creditworthiness for investment projects planned for implementation by an innovative start-up?

Please reply

Best wishes

Are the supra-national investment investments in investment banking an important factor in the ongoing process of economic globalization?

If the increase in the scale of transnational investment investments in investment banking is faster than the rate of economic growth of the countries expressed, for example, in the Gross Domestic Product, is this the way in which economic globalization can generate additional systemic credit risks?

If in the context of these processes the diversification in profitability and income between investment banking and other types of financial institutions and non-financial business entities increases, can this situation be one of the symptoms of increasing systemic risk and the probability of the next global financial crisis appearing in the next several years?

Please reply

Best wishes

The Data is for Academic Research

In your country, do banks cease to finance investment projects related to traditional energy based on the burning of minerals?

Do banks start to finance environmentally friendly investment projects in your country, thus supporting the processes of transformation of the economy towards the implementation of sustainable pro-ecological development?

Please, answer, comments.

I invite you to the discussion.

I pointed out the high level of relevance of the issue taken up in the above question in the article:

Please respond with what do you think about the issues described in this article?

Best wishes

Dariusz Prokopowicz

What kind of analysis of economic and other data provides better knowledge for investing in securities listed on the stock exchange?

Which analysis, ie fundamental or technical analysis, provides better knowledge for investing in securities listed on the stock exchange?

Thanks to which analysis, ie fundamental and technical analysis, investors achieve the best results in investing, the highest returns on investments in securities listed on the stock exchange?

Which investment strategies are the most effective? Are the most effective investment strategies based on conducting fundamental or technical analysis and maybe on a specific combination of both types of analysis?

Please reply

Best wishes

I want to pursue phd in investment banking and management field and looking for taking admission in certain universities. They are asking me to write a research proposal before taking admission. Can you please suggest me more specific topic area‘s which need to research and make my phd worth while for my career.

i am very Thankful to everyone , thanks

Most prefered:- Investment optimization as an extension of Unit Commitment for a Portfolio consisting energy generation Units.

- Unit commiment

- Investment Optimization

- Economic dispatch

Mixed-Integer Linear Programming,

Exact algorithm

The project is to maximize the Net Present Value of Heat generating power plants in a District heating system.

- Using Mixed integer liner programming.

- I need to determine the optimal timing to invest(maximizing Net Present Value) in district heating power plants and at the same time minimizaing Carbon emissions.

- Main constraint: coverage of a given heat demand.

- Investment decision through mixed integer linear programming.

- Investment optimization as extension of unit commitment. (schedule optimization)

- Deterministic approach.

Is it possible to heal the banking banking supervision of corporate investment banking to significantly reduce the dramatic effects of the next global financial crisis for the national economy and society? Is it too late for that?

Of course, this question should be answered in the negative, that it is never too late to repair the operation of any system that is supposed to serve people. But whether the scale of mistakes made in the past has not generated the unavoidable pursuit of a global financial crisis that is even more dramatic in the negative consequences for entire economies and societies. A crisis that will start with the spectacular collapse of one of the largest financial institutions, a bank or an investment fund. A globally operating financial institution that will lose playing "poker" on international capital markets with other investment banks. Some of these others earn from this crisis by winning this "global poker" and real economies will again plunge into a multifaceted economic crisis, debt crisis, a period of deep recession, rising unemployment and falling income of citizens. Is the capital flow in this way through these games, games in "global poker" on the capital markets played between the largest investment banks is economically effective? Well, it is not an economically effective process, it is a process harmful to economic development. So why are these games in "global poker" conducted? Is it only because in the process of excessive, secondarily realized liberalization of supervisory standards over financial systems implemented in the 90's, allowed to create too large, increasingly globally and monopolistic investment banks? In my opinion, not only because. Not only the scale of operations, not only the large share of capital compared to the financial system and the entire economy is a serious threat and a crisis-generating factor. Also important are the elementary rules of risk management, which are forgotten, ignored at certain organizational levels of the financial institution or financial system management.

Analysis of the origin of the next global economic crisis

Currently, forecasting systems are being developed regarding forecasting future trends of economic processes based on various analytical, not only economic, determinants. Personally, I also support the thesis about the impact of various cosmic and atmospheric phenomena on various events that take place on Earth in the field of economy, economics, politics, etc. On the other hand, because sources of the global financial crisis I mainly researched in terms of progress (or rather lack of it) ) in the field of improving the credit risk management process, implementation of modern IT solutions streamlining these processes, filling gaps in legal regulations developed in financial supervision institutions in relation to technological development of transactional, corporate and investment banking, creation of new derivatives etc., so I add to this type of analysis the issue of the analysis of the process of improvement of systemic management, banking credit risk. Unfortunately, the strong investment banking banking lobby influencing the politics of the world's largest economies is accepted by the government establishment, because monetary policy, periodically regulated lending policy, increasingly liberalized, transactional modernization, electronically and disseminated investment banking are areas treated as "universal magical tools" that can be used as a determinant for economic growth as part of state intervention. In this respect, there is a lack of full information flow in the area of ​​growing credit risk and the fast approaching new global financial crisis between the transactional level of sales of banking products and the level of monetary, credit and financial system security at national and supranational level. According to the demands of the classical economy, liberalism at the transactional level of the sale of banking products should not be limited by state intervention at the level of the entire financial system. But the exception in this regard is the issue of the security of the financial system. If, secondarily, the extremely liberalized principles of systemic security periodically lead to an increasing financial crisis in investment and credit banking, why should the costs of these errors be spread across entire economies? Why is it that investment banks in economic crises, which often cause them to earn money from them, and the costs are repaid by entire societies, people lose their jobs and many years of experience of their lives? Therefore, because these investment banks have genuinely monopolized the systemic credit risk management system. They no longer serve the economy, but try to shape economies according to their investment strategies. The question that now arises is whether this harmful and crisis-provoking process can be reversed, corrected before the emergence of the next global financial crisis? Is it already too late and only one of the next financial crises, which will lead to the collapse of not one but a few major banks and investment funds will make it possible to repair damages resulting from errors that politicians began to make in the 1990s liberalizing then secondary issues of banking supervision systems? If it is only in the situation of the next global economic crisis, then how dramatic are the consequences for entire national economies, for societies, for people? It is not easy to predict this issue, but it is almost certain that it will be very dramatic, above all economically and socially, but perhaps also politically, strategically and militarily for many countries.

1) Main constraint: coverage of a given heat demand.

2) Investment decision through mixed integer linear programming.

3) Investment optimization as extension of unit commitment (schedule optimization)

Does anyone have research insights on whether Millennials and their investment needs and habits differ from those of their parents? And if so, how they differ?

i have a data of stock prices in daily frequency. i want to study the relationship of stock price(or returns) with select macro-economic variables. the macroeconomics variables are in monthly series.

so, i have to make the daily frequency of stock prices as monthly frequency.

if i calculate average, i doubt whether it will be representative or not, becuase of the longer time period(ie., one month) and during the month, there may be some extreme values in the distribution

what the the appropriate method in this regard?

thanks in advance

How to compute annualized return

if a company declares buy back of shares, what type of signals it provides to the stock market.

if promoters also participate in the buy back, does it indicate negative future prospects of the company?

thanks in advance.

can anybody suggest a best seminal works on the relationship between macroeconomic variables and stock price?

thanks in advance

how to understand intuitively the Inter-temporal CAPM model? what is the appropriate econometric model to empirical test the inter-temporal CAPM model?

what are the real life applications of Arbitrage Pricing theory?

In other words, How an investor can make use of the theory to get arbitrage profits.?

I would like to undertake a research on empirical testing of international CAPM. how to develop the methodology for testing international CAPM.

can you please suggest best guiding articles on international CAPM?

I am writing my masters thesis on Behavioural Finance, more specifically on how Twitter can be used to predict the return of stocks. Firstly, I am aware that this has already been proven in other literature, therefore I trying to decide how to do this in more detail so that my thesis provides added value. Secondly, I have recently discovered the sentiment analysis that Bloomberg provides, however I would like further guidance as to how I can use this information for my thesis.

I would like to understand the exact uses of the Bloomberg sentiment analysis, as then I would find it easier to decide upon a specific thesis question.

Research and studies about Investment Law in Afghanistan after 2004.

I am need of investor perception related literature for my research project which will help me to refine the research constructs.

Please let me know 

please suggest some construct to the the relationship between human rationality in investment decision and  EMH 

Am trying to use Sharpe and Treynor's ratio but will welcome any suggestion and if possible sources and or market data not older than 2013.

what theories can define the relationship between financial literacy (measured by its three components: knowledge; behavior and attitudes) and investment decision?

The Enron case. How could such a prestigious investment  bank advise investing when the quotations of the shares were falling?

media coverage and analyzing news affect people reaction to and new news.

What is the behavior of a "high-hedging needs" firm at refinancing points? What about its profitability impact on the financial package it will choose/ accept from the bank or the market? Do you know papers on that subject?  

Looking at SAS code examples, including one from WRDS, suggests that it’s simple returns. The reason I ask is because I plan to regress the monthly returns of gross profitability/book-to-market portfolios, using CRSP returns data, against the factors and I would like to make sure my returns are in the correct form.

Thanks

The CDS markets portfolios (sensitive to credit events) construction is important especially for banks and investment management. Can we use VAR measure to assess the risk of such portfolio? if yes, what could be the possible practical implications of VAR for CDS portfolio? 

I have tried searching for semi structured and closed questionnaires in the following websites; ERIC, NEBRASKA RESEARCH INSTITUTE - US, TIP, EBSCO and DISCOVER but I could not find an instrument with credibility and reliability for purpose of Generalization with a high CRONBACH ALPHA.

I will appreciate any assistance. Thanks

Measuring environmental, social, ethical and governance aspects.

I'm in a stage of preparing my dissertation for an MBA. I'm a little confused about the topic and research question. I'm seeking a topic that combines both marketing and finance (CF) or investment management.

Can you please by referring any related literature topics, dilemma, problem?

Not true.

Naive diversification is combining assets into portfolios randomly and ignore correlation. In contrast, Markowitz diversification is combining assets with correlation coefficients.

I am looking for qualified scientists to participate as a guest on my new, internet video series of interviews with researchers working in areas related to financial markets.

The interview will focus on your research. The length of the interview can be flexible, depending on your time availability and the subject matter covered. A short interview could run for ten minutes. A longer one might last for an hour or more. As we are separated geographically, the interviews will be conducted via Skype.

If it will be helpful, graphic images can be inserted into the interviews.

The video series is named after my Kindle book series, The Alpha Interface: Empirical Research on the Financial Markets, about which we have previously corresponded. In fact, the first four interviews – conducted with Peter Hafez, Director of Quantitative Research for the data provider RavenPack – are now online. You can view them at http://www.alphainterface.com/blog-and-video-interviews/.

While this is a new venture for me, I hope it will put you at ease to know that I do have an extensive background as a television interviewer. My television interview series, Thinking Allowed, was broadcast on public television, throughout North America, on a weekly basis for fifteen years. It focused on topics related to philosophy, psychology, health and science. Excerpts from those interviews are available at http://www.youtube.com/user/thinkingallowedtv These videos have been viewed on the internet more than two million times.

My goal in producing the video series and the Alpha Interface books is to help educate the many people with an interest in the financial markets as to the significance of empirical research.

If you are interested in participating as a guest, please email or point me to some of your research papers. I am located, incidentally, in the Pacific Time zone. I expect to be conducting these ongoing interviews throughout the coming year.

Sincerely,

Jeffrey Mishlove, PhD

Contruction of mutual fund portfolio and validating its consistency in different market conditions.

Alpha is a risk-adjusted measure of active return on an investment.

The FF 3 factor model is emerging 2 classes of stock with CAPM to reflect a portfolio's theory.

r - Rf = beta3 x ( Km - Rf ) + bs x SMB + bv x HML + alpha

Alpha Coefficient can show that in an efficient market, the expected value of the alpha coefficient is zero. Therefore the alpha coefficient indicates how an investment has performed after accounting for the risk it involved:

Alpha_i < 0 : the investment has earned too little for its risk (or, was too risky for the return)

Alpha_i = 0 : the investment has earned a return adequate for the risk taken

Alpha_i > 0 : the investment has a return in excess of the reward for the assumed risk

Especially if this is a multi-factor model.

I would like to apply the Sharp ratio to compare between a two portfolios. I don`t have the standard deviation but the default probabilities.

Can I apply the default probability instead of standard deviation or I need to apply some type of transformation function on the default risk, that would approximate it to a standard deviation.

Thanks!

What are the pros and cons of it?

I have a model on the determinants of the private investment.

Generally, how do you predict or measure investor behavior / reaction to some new financial information in the behavioral finance framework?

Although CAPM is the most popular method, determining beta values is a problem. There are stocks which are thinly traded or are not listed. Although applying a levered/ unlevered beta is an option, one also has to find a control group of stocks, which can vary from one stock to another because of industry, size etc. So, is there a more effective method to determine the cost of equity for firms instead of CAPM?

The black swan theory or theory of black swan events is a metaphor that describes an event that is a surprise (to the observer), has a major effect, and after the fact is often inappropriately rationalized with the benefit of hindsight.

Black Swan : The Impact of the Highly Improbable- Nassim Nicholas Taleb

Can experiments be used to study long term group decisions of organizations?