RT Journal Article
SR Electronic
T1 Practical Applications of Asset Price Bubbles and the Land of Oz
JF Practical Applications
FD Institutional Investor Journals
SP 1
OP 3
DO 10.3905/pa.2016.3.4.150
VO 3
IS 4
A1 Jarrow Robert
A1 Wendy Connett
YR 2016
UL https://pm-research.com/content/3/4/1.8.abstract
AB Asset Price Bubbles and the Land of Oz Jarrow Robert In Asset Price Bubbles and the Land of Oz , Robert Jarrow of Cornell University and the Kamakura Corporation argues that most stocks have small price bubbles most of the time, and his research shows that most stocks have small price bubbles representing 1% to 25% of their value.“What my research has done is to allow models to include bubbles,” Jarrow states. Factoring in bubbles will influence investment decisions, including the way in which portfolio managers price and hedge options, he emphasizes.TOPICS: Analysis of individual factors/risk premia, theory