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Economic Value of Stock Return Models: Evidence from Optimal Portfolio

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Pages
168 pages
Reading time
6 hours

More about the book

The book delves into the complexities of stock return predictability, highlighting the ongoing debate over the effectiveness of various economic indicators. It emphasizes the significance of incorporating stylized facts like stochastic volatility and jumps in stock return models. The findings suggest that while jumps influence optimal portfolio weights, a pure diffusion model outperforms jump-diffusion models in terms of portfolio performance. Additionally, integrating jumps in volatility can lead to enhanced economic benefits, presenting a nuanced perspective on investment strategies.

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Economic Value of Stock Return Models: Evidence from Optimal Portfolio, Ye Zhou

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Released
2016
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