Feb 2Do firms with higher leverage deliver higher returns?We review a classic question on the relation between financial risk and equity returns, and discover that the evidence defies the theory...
Feb 2What is the relation between asset risk and leverage?We discuss how financial risk and asset risk are co-determined, and how this is reflected in the beta of assets and in the beta of equity...
Jan 14Fishing for Alpha and catching BetaWe examine the implications of rewarding portfolio managers on the basis of Alpha, and how this can lead to an increase in the Beta of...