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Fama was hailed for his pioneering work into the field, beginning with his work on short-term asset price changes.
Investors can put their wealth into a short-term asset - say, dollar treasury bills - that yields a known rate of return r.
"What has been thought of as a short-term asset can be a long-term problem," said Jonathan Katz, the chief executive of the National Assembly of State Arts Agencies.
"This prepayment will be a short-term asset, like an investment, but particularly for banks with a high percentage of loans, the prepayment will mean they have less money to lend as it will be tied up in this asset," Mr. Yingling said.
Then all the intermediary needs to do is put a fraction p of the funds it receives into the short-term asset, 1-p into the long-term asset; then each investor will expect to receive 1+r if he consumes in period 2, (1+h)2 if he consumes in 3 - dominating the range of possibilities available without the intermediary.
If he invests only in the short-term asset, he will have consumption of 1+r if he turns out to be a period-2 consumer, (1+r)2 (because he must then reinvest his capital short-term) if he turns out to be a period-3 consumer.
Similar(45)
Activists are seen as short-term asset-strippers trying to make a quick return.
Sub-scale, lumbered with dull, ageing models and lacking the engineering and financial resources to develop new products except in partnership with another car firm, Rover clearly had no future.A wasted dowryThat Mr Tower tried hard to find such a partner, eventually managing to tie up only a short-term asset-stripping deal with SAIC, a Chinese manufacturer, is not in doubt.
"Answer: the cash and other short-term assets line.
By law, money funds can buy only top-quality, short-term assets like overnight bank notes or Treasury bills.
Even short-term assets may fluctuate as interest rates change, even if the moves are very small.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com