INVITED EDITORIAL COMMENT The State of Research in Finance

Thirty-five years later, Michael Hopewell and George Kaufman [1973] published a paper in theAmerican Economic Review showing the link between Macaulay's duration measure and a bond's price sensitivity to changes in interest rates--a measure now commonly used in controlling a portfolio'...

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Bibliographic Details
Published inJournal of portfolio management Vol. 43; no. 4; pp. 1 - 4
Main Author Kritzman, Mark
Format Journal Article
LanguageEnglish
Published London Pageant Media 01.07.2017
Subjects
Capital assets
CAPM
Collaboration
Economic crisis
Economic models
Equilibrium
Interest rates
International finance
Investment policy
Investments
Mathematical models
Partial differential equations
Portfolio management
Pricing policies
United States > US
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Summary:Thirty-five years later, Michael Hopewell and George Kaufman [1973] published a paper in theAmerican Economic Review showing the link between Macaulay's duration measure and a bond's price sensitivity to changes in interest rates--a measure now commonly used in controlling a portfolio's interest rate risk. In 1952, Harry Markowitz published his seminal paper,Portfolio Selection , in which he showed how to combine risky assets into efficient portfolios that yield the highest expected return for a given level of risk. [...]better data and greater computational power will enable researchers to produce solutions that are less reliant on simplified models, which though elegant, may not always be the most accurate representation of reality. While it has not been unusual for academics to migrate from academia to industry, some have recently returned to academia with new insights grounded in real-world experience. [...]many academics participate in industry as board members, consultants, or as part-time professionals in industry enterprises.
ISSN:0095-4918
2168-8656
DOI:10.3905/jpm.2017.43.4.001