When Do Stop-Loss Rules Stop Losses?

Stop-loss rules-predetermined policies that reduce a portfolio's exposure after reaching a certain threshold of cumulative losses-are commonly used by retail and institutional in- vestors to manage the risks of their investments, but have also been viewed with some skep- ticism by critics who question their e±cacy. In this paper, we develop a simple framework for measuring the impact of stop-loss rules on the expected return and volatility of an arbitrary portfolio strategy, and derive conditions under which stop-loss rules add or subtract value to that portfolio strategy. We show that under the Random Walk Hypothesis, simple 0/1 stop-loss rules always decrease a strategy's expected return, but in the presence of momen- tum, stop-loss rules can add value. To illustrate the practical relevance of our framework, we provide an empirical analysis of a stop-loss policy applied to a buy-and-hold strategy in U.S. equities, where the stop-loss asset is U.S. long-term government bonds. Using monthly returns data from January 1950 to December 2004, we find that certain stop-loss rules add 50 to 100 basis points per month to the buy-and-hold portfolio during stop-out periods. By computing performance measures for several price processes, including a new regime- switching model that implies periodic "flights-to-quality", we provide a possible explanation for our empirical results and connections to the behavioral finance literature.Investments; Portfolio Management; Risk Management; Performance Attribution; Behavioral Finance

Developing commercial law in transition economies : examples from Hungary and Russia

Implementing decentralized legal frameworks requires reasonable laws, adequate institutions, and market-oriented incentives. All three must exist together. In transition economies, not only must new laws be drafted but they must be accompanied by the growth of supportive institutions. And they must be accompanied by economic reforms - whether privatization or banking reforms - that separate actors from the state and reinforce market-based incentives. The authors of this paper use two case studies - Hungarian bankruptcy law and Russian company law - to illustrate the interaction of these three elements in practice. These cases illustrate their general view that Central Europe is somewhat further along on all three dimensions than Russia. As for incentives, in both countries relevant actors exert weaker demand for proper implementation of thelaws on the books than one would expect in more mature market economies. The cases belie any simplistic notion that the rule of law can be mechanically dictated from above. Top-down reform of bankruptcy law in Hungary appears to have been at least marginally successful in changing expectations and behavior, partly because it stimulated the growth of new supporting institutions. Finally, top-down reform of company law in Russia has had little impact to date on either institutional development or firm behavior.Legal Institutions of the Market Economy,Legal Products,Environmental Economics&Policies,Banks&Banking Reform,Judicial System Reform,Legal Products,Banks&Banking Reform,Environmental Economics&Policies,National Governance,Legal Institutions of the Market Economy

Efficient dynamic simulation for multiple chain robotic mechanisms

An efficient O(mN) algorithm for dynamic simulation of simple closed-chain robotic mechanisms is presented, where m is the number of chains, and N is the number of degrees of freedom for each chain. It is based on computation of the operational space inertia matrix (6 x 6) for each chain as seen by the body, load, or object. Also, computation of the chain dynamics, when opened at one end, is required, and the most efficient algorithm is used for this purpose. Parallel implementation of the dynamics for each chain results in an O(N) + O(log sub 2 m+1) algorithm

An Engineered Nonsense \u3cem\u3eURA3\u3c/em\u3e Allele Provides a Versatile System to Detect the Presence, Absence and Appearance of the [em\u3ePSI\u3c/em\u3e\u3csup\u3e+\u3c/sup\u3e] Prion in \u3cem\u3eSaccharomyces cerevisiae\u3c/em\u3e

Common methods to identify yeast cells containing the prion form of the Sup35 translation termination factor, [PSI+], involve a nonsense suppressor phenotype. Decreased function of Sup35p in [PSI+] cells leads to readthrough of certain nonsense mutations in a few auxotrophic markers, for example, ade1-14. This readthrough results in growth on adenine deficient media. While this powerful tool has dramatically facilitated the study of [PSI+], it is limited to a narrow range of laboratory strains and cannot easily be used to screen for cells that have lost the [PSI+] prion. Therefore we have engineered a nonsense mutation in the widely used URA3 gene, termed the ura3-14 allele. Introduction of the ura3-14 allele into an array of genetic backgrounds, carrying a loss-of-function URA3 mutation and [PSI+], allows for growth on media lacking uracil, indicative of decreased translational termination efficiency. This ura3-14 allele is able to distinguish various forms of the [PSI+] prion, called variants and is able to detect the de novo appearance of [PSI+] in strains carrying the prion form of Rnq1p, [PIN+]. Furthermore, 5-fluoorotic acid, which kills cells making functional Ura3p, provides a means to select for [psi−] derivatives in a population of [PSI+] cells marked with the ura3-14 allele, making this system much more versatile than previous methods

Valuing Strategic Alliances in the Pharmaceutical/Biotechnology Industry

In an era of rapid and changing technological advances, a firm's survival and growth depends on its' ability to introduce products to the market. Since a firm's growth and survival depends on its' ability to develop products and services over time (Penrose, 1959), the question posed by this study is what determines a firm's ability to introduce products to market? In this study, a firm's ability to introduce product to markets are influenced by its' "absorptive capacity" to identify and internalize the resource benefits of its' alliance partners. Such an integrated view is absent in firm level and strategic alliance studies of product development. A conceptual model of firm product introductions is developed and empirically tested. Results generally support the hypotheses of this study.Research and Development/Tech Change/Emerging Technologies,

Professional practices, training, and funding mechanisms: A survey of pediatric primary care psychologists

The integration of mental health services in primary care settings has expanded rapidly in recent years with psychologists being at the forefront of efforts to promote healthy behaviors, reduce disease, and care for behavioral, emotional, and developmental needs to promote overall health and well-being for children and families (Asarnow, Kolko, Miranda,&Kazak, 2017; Stancin& Perrin, 2014). While there are many psychologists working in pediatric primary care (PPC), little is known about the specific activities that these psychologists engage in, the training they receive, or funding mechanisms that support their work. This study sought to address this gap in the literature through a survey of psychologists working in PPC. An anonymous online survey was disseminated to members of professional organizations and listservs who were identified as having interest in PPC. Psychologists (N-65) currently practicing in PPC completed the survey by reporting on clinical roles and practices, professional training, practice settings, and funding supports in PPC settings. Results indicate that psychologists assume a number of roles in PPC including providing individual and family therapy, conducting screenings for child mental health concerns, and providing consultation to medical colleagues. Many psychologists also provide supervision and offer educational opportunities for those in related fields, such as medicine and social work. Engagement in research activities was identified as a secondary activity. It was reported that a number of clinical activities were not billed for on a regular basis. Additional areas of research will be discussed along with implications for clinical services in PPC.. © 2017 American Psychological Association

Clues to meaning : exploring potential effects of paired, congruent cues on toddlers' word learning

The entire dissertation/thesis text is included in the research.pdf file; the official abstract appears in the short.pdf file (which also appears in the research.pdf); a non-technical general description, or public abstract, appears in the public.pdf file.Title from PDF of title page (University of Missouri--Columbia, viewed on January 5, 2010).Vita.Thesis advisor: Judith C. Goodman.Ph. D. University of Missouri-Columbia 2009.Although many researchers believe that toddlers use multiple cues to map words to meanings, most empirical studies of word learning focus on toddlers' use of single cue types in isolation and on developmental trends in the use of those cues. Thus, little is known about children's ability to process and integrate multiple cues simultaneously. The current study explored toddlers' use of single cues and paired, congruent cues for fastmapping and retention of fastmapped words. Forty-eight toddlers (12 each at ages 18, 24, 30, and 36 months) participated in six fastmapping trials to assess their ability to infer the referents of novel nouns. Three of the trials provided single cues to word meaning and the other three provided paired, congruent cues. We assessed children's retention of the words they had fastmapped correctly 24 hours later. All age groups except the 18-month olds used the single and the paired cues to map words to referents at significant levels. The two older age groups showed significant retention of the word-referent associations. We found no significant differences between the single or paired cue conditions for fastmapping or for retention of items, suggesting that children are not integrating the two cues. Children's fastmapping ability improved with age, but recall remained static. Children demonstrated better retention of the first three word-referent pairings than the last three, indicating that a ceiling might exist on the number of words that can be retained when they have been fastmapped in one intense session.Includes bibliographical reference