Statistical Arbitrage in the U.S. Equities Market Marco Avellaneda∗† and Jeong-Hyun Lee∗ First draft: July 11‚ 2008 This version: June 15‚ 2009 Abstract We study model-driven statistical arbitrage in U.S. equities. The trading signals are generated in two ways: using Principal Component Analysis and using sector ETFs. In both cases‚ we consider the residuals‚ or idiosyncratic components of stock returns‚ and model them as mean-reverting processes. This leads naturally to “contrarian” trading
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Case 15-12 Debt versus Equity Case 15-12 Debt versus Equity Discuss the entity theory rationale for making no distinction between debt and equity. The entity theory was among the first new theories of ownership. (Schroeder‚ Clark‚ & Cathey‚ 2009‚ page 499). It depicts the accounting equation as assets equals equity (Schroeder‚ Clark‚ & Cathey‚ 2009‚ page 363). It makes no distinction between debt and equity (Schroeder‚ Clark‚ & Cathey‚ 2009‚ page 500). Entity theorist believe that companies’
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Piaget’s Theory Of Cognitive Development Jaclyn F. Losquadro Hunter College‚ The City Of New York Piaget’s Theory of Cognitive Development Cognitive development is much more than addition of new facts and ideas to an existing store of information. According to Piaget‚ our thinking processes change radically‚ though slowly‚ from birth to maturity because we constantly strive to make sense of our world. He also believed that all people pass through the same four stages (sensorimotor‚ preoperational
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Security Analysis and Portfolio Management Equity Research Report – Shalimar Paints Industry Overview: Indian Paint Industry is today worth INR 275 bn. with ~69 % coming from organized segment and rest coming from unorganized segment. India has one of the lowest per-capita consumption of paints at just 1.5 kg. (World Average = 8 kg.) because of which Indian Paint Industry is projected to sustain its growth momentum to reach ~460 bn. by 2016. Organized segment is a very concentrated
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Fermin Crime theories- American gangster The behavior theory claims that humans learn their behavior through experiences. They learn how to and commit crimes because they receive favorable incentives for committing the crimes. This theory ties into the social learning theory which claims that people learn their aggressive or criminal behaviors from watching others around them engage in these acts. Another interesting theory is the rational choice theory. The rational choice theory is used to describe
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Piaget’s theory of cognitive development Piaget’s theory of cognitive development is a comprehensive theory about the nature and development of human intelligence first developed by Jean Piaget. It is primarily known as a developmental stage theory‚ but in fact‚ it deals with the nature of knowledge itself and how humans come gradually to acquire it‚ construct it‚ and use it. Moreover‚ Piaget claims the idea that cognitive development is at the centre of human organism and language is contingent
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Definition of personality: due to the different number of theory that suggest the key to understanding personality it is proven difficult to come up with a definition that is acceptable to all theory’s i.e. trait theory‚ social learning theory and so on. “Those relatively stable and enduring aspects of individuals which distinguish them from other people‚ making them unique but at the same time permit a comparison between individuals” (R.Gross)‚ 1998‚ 21/01/2010 “Personality is the underlying
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something really exists‚ how can I know that?) An example of this is the question: “How does an infant know who its mother is?” The “psychological first moment” (bonding) between infant and mother‚ is it real‚ perceived or just a belief. THEORY It is a belief that is taken from the observed physical sciences into the behavioural sciences and used to describe human behaviour as determined through internal or external factors. (Becvar‚ 2013) A theory is used to describe and predict future behaviour
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Leadership Theory in the Wizard of Oz The movie The Wizard of Oz based on the story by L. Frank Baum has been used by many as a lesson in leadership. There are several emerging leaders in the story from Dorothy up to the Wizard of Oz himself each with their own leadership and motivational style. Let’s examine this classic film as it relates to 2 popular theories: the Path-Goal Theory and the Expectancy Theory of Motivation. I. The Path-Goal Theory The Path-Goal Theory is a leadership model that
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Pep Boys-Manny‚ Moe‚ and Jack Equity Analysis and Valuation Kevin Biser LeAnn Carmona Fabian Garcia Brendan Grey Kevin Tavarez Brian Timme 1 Table of Contents Executive Summary.............................................................................................................. 9 Industry Analysis ..................................................................................................................................... 10 Accounting Analysis ..................
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