EQUITY PREMIUM PUZZLE - EPP
Theory describing the higher historical real returns of stock that have surpassed the return of government bonds. The equity premium, equity returns minus bond returns, has been around 6% on average for the last century. Presumably, it would show the relative risk of stocks over risk-free government bonds, but the puzzle emerges because the sudden huge percentage signifies a suspiciously high degree of risk aversion among traders.
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M3
Measuring money supply which includes the following: M2, large time-deposits, repos of maturity larger than one day at commercial banks, institutio ...
S&P 500 Mini
S&P 500 Mini is a derivative contract that represents a designated fraction of the trading value of a standard S&P futures or options contr ...
Rationalization
A reorganization of a company to surge its efficiency. Reorganization may lead to an expansion or reduction in company size, policy changes, or an ...
Industry Bet
Strategy where investors or portfolio managers escalate or reduce holdings in an entire industry, rather than buying or selling individual stocks f ...
Risk Averse
A term that describes an investor who will prefer an investment with the lower risk when he or she encounters two investments with a similar expect ...
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