A methodology is developed to determine when a portfolio should be weighted in favor of
stocks or bonds without using explicit forecasts. The major difference between stocks and …

The optimal asset mix depends on the assumed individual asset returns and their volatility
over some extended period of time. Summary statistics based on some long-run historical …

The effectiveness of hedging foreign assets hinges on its ability to reduce risk over some
longer time frame without giving up too much (if any) expected return. Theory suggests that, in …

A relative valuation model based on a market-implied excess risk premium measure relating
long-term to short-term fixed-income securities is developed. The model is predicated on 3 …

The decision to expose an international portfolio to exchange rate risk has traditionally been
seen as an independent bet on exchange rate movements, having little to do with the initial …

14 opment and application of advanced technology in the indus trialized countries. Prior to
the date of availability, which need not be the time at which actual production begins, the …

An assessment of 1979 energy policy begins by reviewing the consequences of oil-import
dependence and the implications of reducing that dependence by emphasizing conservation, …

… Pat Finkle whose stream of banter constantly uplifted; Sheldon Benjamin whose sagacity
was unerring; Allan Jay Friedman whose music proffered sweet nourishment; Michael Benari …

We design a new, implementable capital requirement for large financial institutions (LFIs) that
are too big to fail. Our mechanism mimics the operation of margin accounts. To ensure that …

… Acknowledgements: I would like to thank Yoav Ben-Ari for his extensive comments on the
first draft of this paper. I am grateful to the Helsinki University of Technology for hosting me on …