Predictive systems: Living with imperfect predictors

Ľ Pástor, RF Stambaugh - The Journal of Finance, 2009 - Wiley Online Library
We develop a framework for estimating expected returns—a predictive system—that allows
predictors to be imperfectly correlated with the conditional expected return. When predictors …

Are stocks really less volatile in the long run?

Ľ Pástor, RF Stambaugh - The Journal of Finance, 2012 - Wiley Online Library
According to conventional wisdom, annualized volatility of stock returns is lower over long
horizons than over short horizons, due to mean reversion induced by return predictability. In …

International stock return predictability under model uncertainty

A Schrimpf - Journal of International Money and Finance, 2010 - Elsevier
This paper examines return predictability when the investor is uncertain about the right state
variables. A novel feature of the model averaging approach used in this paper is to account …

Are stocks really less volatile in the long run?

L Pastor, RF Stambaugh - EFA 2009 Bergen Meetings Paper, AFA …, 2011 - papers.ssrn.com
According to conventional wisdom, annualized volatility of stock returns is lower over long
horizons than over short horizons, due to mean reversion induced by return predictability. In …

Bayesian Applications to the Investment Management Process

B Bagasheva, SZ Rachev, J Hsu, F Fabozzi - Handbook on Information …, 2008 - Springer
There are several tasks in the investment management process. These include setting the
investment objectives, establishing an investment policy, selecting a portfolio strategy, asset …

[PDF][PDF] International return predictability and the term structure of risk

J Pénasse - Citeseer
This paper explores return predictability within a panel VAR setup. Using quarterly data from
1971 to 2013, I show that stock and bond are actually predictable in 10 countries with well …