# Tag Info

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In the dot.com era the Internet was considered a-winner-takes-it-all market, new tech start-ups (like Netscape, Amazon.com and the famous Pets.com) was measured by how much the capital they where able to chew through, the logic being that the more they spend the more aggressive they were (at least in the investors' eyes), conquering this new market known as ...

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Volatility changes over time. Even if daily returns are normal, assuming the conditional volatility each day is known, the unconditional distribution of daily returns will have excess kurtosis. For example, if daily returns have a standard deviation of 1%, 90% of the time, and a standard deviation of 3%, 10% of the time, the presence of the high-volatility ...

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There are several different ways you could formulate this problem in game theoretic terms. Hoping this is not too basic an answer for you : from what you write, the two canonical approaches would be to frame things in terms of Cournot oligopolies (firms simultaneously set quantities and prices result from the market clearing condition supply=demand) or ...

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Here is a good explanation by the SF Fed. In a nutshell, there is the current account (trade deficit/ surplus) financial account (asset bought/ sold overseas) and the capital account (intangible assets, usually negligible). The sum of the three for each country is zero by definition. Therefore the trade deficit must be accompanied by a financial account ...

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That is true. Utility would not be concave anymore under prospect theory (only for gains), but convex for losses, which is evidence against CAPM. CAPM is valid either : -if the utility function is quadratic (which is nonsense in terms of economic interpretation, and in general, Von Neumann- Morgenstern utility describes poorly reality and should be ...

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The general problem of the investor is: $$\max_{w\in[0,1]^n} U(\mu_p(w),\sigma_p(w))\quad s.t. \sum_{i=1}^n w_i=1$$ where $w$ being the portfolio weights, and $U$ utility function of portfolio risk $\sigma_p$ and return $\mu_p$. CAPM assumes investors with concave utility function $U=\mu_p-\frac{1}{2}\sigma_p^2$, from which then follows that all ...

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"Burn rate" is a measure of "spend rate" relative to cash on hand. So if you have $10 million dollars, and you spend$1 million dollars a month, you will "burn through" your cash in ten months, at which time your company will either "take off," get new financing, or go under. Strategies that rely on "burn rate" are risky ones. Nevertheless, they are ...

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I think that you have to distinguish between a 'fiat' (modern) monetary system and a 'gold standard' one. But sustainability will always be ensured endogenously, one way or another. Fiat money is created whenever a loan is made, and the \\$50 you describe will be created endogenously in the economy. Advocates would call it a virtous rather than a vicious ...

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The interest does not necessarily come from another loan. The ECB is paying interest to banks which is essentially to create ("print") new money. It is a fact, that the money supply is constantly growing over time, which in a simple model would just equal the interest paid out on loans. That does not necessarily have something to do with the economy being ...

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A naive reason has been explained by Nassim Nicholas Taleb in his book titled Black Swan. In a deeper look, one should be aware that no historical data analysis can truly estimate the real tail risk of financial markets. By the same token, standard deviation, max drawdown, expected shortfall, VaR, Conditional Var... No single or combination of such ...

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Extreme events in financial markets, like the crash of 1987, occur more frequently in the real world than a normal distribution would predict. The economic facts that drive those extreme events are varying. Such extreme declines have been observed over many different time periods (Tulip-mania for instance), which suggests that it is more likely inherent to ...

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A good introductory book with a lot of data and statistics provided is: "Macroeconomics: Understanding the Global Economy" by David Miles and Andrew Scott. You can find the link to the book here: Macroeconomics - Miles/Scott It uses a lot of real world examples to relate economic concepts with real data and explain observed economic phenomena. If you are ...

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What is meant is the so called Laffer effect or Laffer curve. The rationale is that when you cut taxes that this will stimulate business and thereby over-compensate the loss in taxes the government originally had.

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The master list already has dukascopy listed for forex historical tick data. Dukas also now has selected CFDs of indices, metal/energy, and individual stocks. The forex data for the majors go back to 1997 or so. It's free, so you get what you pay for. The data that is more recent (last 5 years) has almost 0 gaps on the majors and crosses. What was also ...

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