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Some of this return differential can be attributed to lower risk, captured by return comovement among high (low) smoothing firms.
In particular, we show that the sign and magnitude of the coefficient on the lagged interest differential is governed by a type of time-varying beta risk that reflects the conditional covariance between exchange rate returns and the return differential between foreign and domestic equities.
Return differential.
SNB profits would come, as now, from the return differential between its assets and reserves.
So if you can identify a return differential, just as with pressure differentials in tectonic plates or volcanoes, you know something is going to blow up.
Petkovaa and Zhang (2005) find that the return differential between value and glamour portfolios can be partially attributed to time-varying risk.
Similar(54)
But we also find concrete evidence of a risk premium, in that expected return differentials are correlated with the VIX measure of risk -- even though the risk premium can't explain forward bias.
Investors, in part seeking "return differentials that favor emerging markets" are actually being drawn by "additional returns [from] expected exchange rate appreciation," said Bernanke.
Return differentials between regions have narrowed while return expectations around the world have compressed to form investors' Holy Grail: a high single-digit return with low volatility.
More recently, however, advances in neuromorphic computing devices which work in analog, and computing methods using large populations of interacting elements (e.g. "neural" networks), have seen the return of differential equations as an everyday part of describing computing systems.
Returning to differential equations, Hamming studied means of numerically integrating them.
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