We consider optimal hedging decisions for a firm whose stock returns are affected by market returns and an idiosyncratic factor that is orthogonal to the market return. We show that the level of firm’s cash flows depend on the level of the market and the level of the idiosyncratic factor multiplicatively because of compounding. Minimizing the variance of the cash flow requires a substantial off...

Context: A visualization of three-dimensional incompressible flows by divergence-free quasitwo-dimensional projections of velocity field on three coordinate planes is proposed. Objective: To visualize 3D incompressible flow by 3 two-dimensional plots. Method: It is argued that such divergence-free projections satisfying all the velocity boundary conditions are unique for a given velocity field....

Left restriction semigroups have appeared at the convergence of several flows of research, including the theories of abstract semigroups, of partial mappings, of closure operations and even in logic. For instance, they model unary semigroups of partial mappings on a set, where the unary operation takes a map to the identity map on its domain. This perspective leads naturally to dual and two-sid...

Comparing aid flows in the 1990s with those from the 1970s make it clear that there are now many more countries receiving what may be termed "high aid" (say in excess of 30 per cent of GNP) and that there has emerged a group of countries receiving very high aid. Whilst never formally considered in the literature, there is a feeling that such high aid may do more harm than good, a notion which m...

Microbial fuel cells (MFCs) are processes used for simultanuous bioenergy capturing and waste treatment. In this study, a model for MFCs based upon a conduction mechanism for electron transfer is proposed, which integrates substrate utilization, current production and conduction and  microbial distribution and growth in batch flow mode. The outputs of the model and that of a mediator based mode...

Amartya Sen has argued that many development and freedom measures such as health, education, political and civil liberties are important constituents of human welfare. We concur with Sen and conjecture that an important reason these measures affect human welfare is because they allow individuals to better cope with risk and uncertainty that cannot be hedged using market based insurance mechanis...

Understanding the mutual relationships between information flows and social activity in society today is one of the cornerstones of the social sciences. In financial economics, the key issue in this regard is understanding and quantifying how news of all possible types (geopolitical, environmental, social, financial, economic, etc.) affect trading and the pricing of firms in organized stock mar...

A general type of mathematical argument is described, which applies to all the cases in which dynamo maintenance of a steady magnetic field by motion in a uniform density is known to be impossible. Previous work has demonstrated that magnetic field decay is unavoidable under conditions of axisymmetry and in spherical or planar incompressible flows. These known results are encompassed by a calcu...

The paper proposes a new method to estimate quality adjusted commercial property price indexes using real estate investment trust (REIT) data. The method is based on the present value approach, but the way in which current operating income and the capitalization rate are estimated differs from the traditional method. The traditional method uses a hedonic regression with appraisal information on...

This paper investigates the determinants of Spanish vertical intra-industry trade with a large sample of countries. We empirically test the comparative advantage explanation. To this aim, we build physical, human and technological capital stocks. On average, that is using OLS techniques, differences in endowments are a limitation for vertical intra-industry trade. Using quantile regressions tec...