Search results for "versification"
showing 10 items of 185 documents
Portfolio performance and the Euro: Prospects for new potential EMU members
2008
Abstract Entering the EMU removes currency risk for assets originating in the Euro area while diversification opportunities are likely reduced. Taking the perspective of an investor in one of the 12 countries that joined the EU in 2004–2007, we contrast actual optimal composition of international equity holdings against two artificial scenarios: costless hedging against exchange rate risk and presuming the local market to be part of the EMU. State specific optimal portfolios are determined from realized covariances for the period 2000–2006. Optimized risk is found smaller under currency unification and implied Sharp ratios signal significant benefits of EMU participation.
Changes in determinants of the interest margin in today’s economy
2019
This study examined the interest margin following the significant drop in its contribution to credit institutions’ total income. Balance sheet variables, income statement and annual report variables, and external variables were studied separately. Variables that had not previously been studied in the literature were considered, and determinants that had already been studied were revisited after the reduction in the interest margin. The diversification of investment in associated companies and investment in fixed and variable income are causes of this decrease in the interest margin. Higher fees and commissions offset this decrease. Greater size and market power have reduced the interest mar…
Emerging Market Contagion Under Geopolitical Uncertainty
2019
We find that 10 emerging stock markets have high risk of contagion on the regional level but lower spillover with respect to the global markets, implying a potential for diversification benefits between emerging and global markets. Regional market integration seems to have been caused by trade integration, which has a policy implication for trade agreements’ systemic risk effects. We find that the geopolitical risk has no impact on either the return, or volatility spillovers. However, the general stock market risk (VIX) is connected to individual market volatilities, while the oil market is largely receiving the spillovers from the other markets. peerReviewed
CAMELINA SATIVA AS A CROP FOR DIVERSIFICATION OF AGRICULTURE AND AS A PRODUCER OF HIGH QUALITY OIL
2007
‘Camelina sativa’ is one of the oldest oil crops in Europe. Growing areas were reduced dramatically in 20-40-ties of the last century. Low price of rape oil and unclear composition of camelina oil were primary reasons of this process. Nevertheless, last years ‘Camelina sativa' attracted a great interest of scientists and oil processors as a crop for diversification of agriculture and, in the same time, for producing of the high quantity and quality oil for biofuel, feeding, food, and pharmacy (source of a-linolenic acid, linoleic acid and vitamins, especially E). In Latvia ‘Camelina sativa' is spread as a wild form but for the agriculture it is a new crop.The potential of me of ‘Camelina sa…
Alternative Income Sources – Entrepreneurship Development or Households’ Economic Needs after the COVID-19 Crisis?
2021
Purpose: The purpose of this paper is to identify and analyze the COVID-19 pandemic implications for alternative income sources in transition economy with the dispute based on literature and research. Design/Methodology/Approach: The following research methods were used. Desk extensive research and analysis of raw data collected for the study. An original in-depth interview form was developed, and scientific dispute based on subject literature was conducted. A research hypothesis, aimed at verifying the research problem, were formulated. Findings: The study highlights that, aside from passion, the main reason for undertaking additional economic activity is to obtain additional income. Pract…
Wood energy production, sustainable farming livelihood and multifunctionality in Finland
2012
Abstract Climate change and the projected depletion of fossil energy resources pose multiple global challenges. Innovative technologies offer interesting possibilities to achieve more sustainable outcomes in the energy production sector. Local, decentralized alternatives have the potential to sustain livelihoods in rural areas. One example of such a venture has emerged around heating businesses in rural Finland, and is referred to as heat entrepreneurship. Heat entrepreneurship entails a system where a local forest owner, usually a farmer, provides heat to a small community or local building, such as a school. Heat is produced using local forest resources that would otherwise be unutilized.…
Block Bootstrap Methods and the Choice of Stocks for the Long Run
2011
Financial advisors commonly recommend that the investment horizon should be rather long in order to benefit from the "time diversification". In this case, in order to choose the optimal portfolio, it is necessary to estimate the risk and reward of several alternative portfolios over a long-run given a sample of observations over a short-run. Two interrelated obstacles in these estimations are lack of sufficient data and the uncertainty in the nature of the return generating process. To overcome these obstacles researchers rely heavily on block bootstrap methods. In this paper we demonstrate that the estimates provided by a block bootstrap method are generally biased and we propose two metho…
Rural livelihood diversification: a solution for poverty in the post‐Soviet rural Baltic states?
2019
This article analyses rural livelihood diversification through a longitudinal follow‐up survey, that targets former collective farm workers in Estonia, Latvia and Lithuania. It argues, that between 1995 and 2010 the former collective farm workers employed three distinct livelihood diversification strategies in order to create their living. A wage‐based livelihood diversification strategy, which does not include any agricultural practices, was more common among the better‐off households. A farm‐based livelihood diversification strategy, which does not rely on salaries, was more often employed by the poor. A mixed strategy, that combines both wage income and farm activities, was used by both …
Dietary behaviour and competition for vegetal resources in two Early Miocene pecoran ruminants from Central Spain
2012
ABSTRACT Dietary behaviour and competition for resources are investigated for the small-sized ruminants Andegameryx Ginsburg, 1971 and Procervulus Gaudry, 1877 representatives of two largely distinct states of diversification of pecorans. Results obtained from dental microwear and mesowear methodologies are concordant with a mixed feeder strategy for the taxa from the Early Miocene environments of the Iberian Chain (Central Spain). Further, the Spanish taxa investigated had less abrasive diets than their relatives from others similarly aged localities in Europe. This fact raises an important evolutionary uncertainty concerning the traditional characterization of first pecorans as specialize…
Warren Buffett versus Zvi Bodie: Should You Buy Or Sell Put Options?
2021
Academics and investment professionals often disagree when it comes to investment advice. Legendary investor Warren Buffett is a proponent of time diversification and firmly believes that stocks are less risky in the long run. Therefore, he often sells long-term put options instead of buying them for portfolio protection. By contrast, the famous finance professor Zvi Bodie argues that time diversification is a fallacy and, therefore, his advice to fund managers is to buy long-term portfolio insurance. In this article, we consider the optimal portfolio choice problem for a loss-averse investor. First, we demonstrate that our loss-averse investor subscribes to the principle of time diversific…