It’s All In The Positive Skew

I recently read an academic paper By Hendrik Bassembinder titled Do Stocks Outperform Treasury Bills? on the long-term performance of U.S. equities that was so interesting (yes, it does happen!) that I thought it important to share an overview of it with the readers of Canadian MoneySaver. Bessembinder’s paper (which is theoretically still in draft form), while definitely “academic” in style, is thankfully largely free of higher-order mathematics, and is worth...