Using the martingale approach, we show that the optimal strategy can be simplified to include, in addition to the pure hedge and speculative components, only two Merton Breeden-type hedging eleMerton Breeden-typee is thedgingelementsate variables.
We find that, no matter what the method of decomposition is, shocks to both fundamental and speculative components have positive effects on investment and that, in contrast to the earlier literature, the effect of the speculative shock is at least as large as that of a shock to fundamentals.
When the investment opportunity set is driven by an arbitrary number of state variables, the optimal portfolio strategy is known to contain a pure, preference free, hedge component, a speculative element and Merton Breeden hedging terms against the fluctuations of each and every state variable.
A publisher (say) who must share any future speculative gains with the author will pay the author less for the work, so the risky component of the authors expected remuneration will increase relative to the certain component.
We focus on the distinction between speculative and fundamental components of share-price movements and we contribute to the literature by evaluating four alternative methods of decomposing share-price movements into these two components.
Like the other Spectre variants, this one has to do with "speculative execution," a core component of modern computing architecture that predicts what might be required of it in the immediate future and executes on it, either keeping the results if the prediction is right or discarding them if not.
In spite of the enormous research effort on diet and cancer, the proportion of cancer attributable to diet or to any specific dietary component remains speculative.
Forest City Ratner's own data show the arena to be a money-loser, and anyone in the real estate field would recognize the scheme's office component as highly speculative.
This paper examines architectural endeavors in Europe, North America and Asia that emphasize energy efficiency and highlights the five circumstances from which financial obstacles emerge: (1) components interdependency, (2) speculative financial return, (3) lowest cost focused, (4) neglected innovative effort, and (5) financial misallocation.
Predications about the precise ERP components that we might observe are necessarily speculative.
