Perhaps more than any other development, finance was ushered into the modern era with the development of the Capital Asset Pricing Model (CAPM) by William Sharpe in the early 60s. Though commonly criticized as too simple and reductionist, the model is still used today as an easy way to determine a stock's exposure to the market:
More …This post is going to be a little different from usual; instead of markets, we're going to look at a video game, namely, Counter-Strike: Global Offensive (CS:GO). CS:GO, like most great games, is easy to learn but deceptively hard to master. For those at are unfamiliar with the game, we'll give a quick overview below.
More …In the final installment of this three part series, we are going to use our results from the previous two posts to construct a fully automated variable leverage ETF. In part one, we derived the optimal leverage ratio for maximizing returns and in part two we applied the ARMA and GARCH models to forecast returns and volatility, respectively.
More …In part one, we looked into the relationship between volatility, returns, and leverage and derived an equation for the optimal leverage ratio that maximizes the expected return of a portfolio. This leverage ratio is dependent on two principle components, expected variance and expected returns:
More …Did you know there's one weird trick that Wall Street doesn't want you to know? For only one payment of $39.99, you can get access to this limited time only exclusive video that will show you how to fight that bear market! Click here before Wall Street makes it illegal… Or you could just read this post, I guess.
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