Judicious use of the rate of return framework on equity, or "cost of capital" facilitates decision-making within the financial industry by providing a metric for comparing different stock markets between them but also a comparison to other asset classes.
While the AMF and European regulators plan to limit or prohibit HFT, the BSI considers it to be beneficial to the foreign exchange market in normal times and in times of stress...
According to Thami Kabbaj, some traders are in a state of cognitive dissonance: They totally obscure the loss and focus solely on the information that reinforces.
A convex strategy seems to better correspond to long-term investors in terms of preference structures, potentially ready to give up some of their earnings to avoid losses that would be difficult to handle from an emotional point of view...
It is the conclusion of a paper entitled «The Changing Role of Hedge Funds in the Global Economy » written by Dr. Everett Ehrlich. He would expect more state and local governments will make them part of the solution moving forward.