The "Fear Index" and Derivatives:
Setting the Record Straight
Today's news is awash in stories about the failing economy. Many are well researched and provide much-needed insight into this troubled time. Some, however, seek not the truth, but the soundbite, especially if it can be used to pinpoint a villain.
Bob Whaley, Valere Blair Potter Professor of Management in Finance, wants to clear up some of the misunderstandings generated by that approach. Whaley is the creator of the Volatility Index (VIX) on the CBOE and author of Derivatives: Markets, Valuation, and Risk Management (Wiley Financial).
> The Fear Factor: Volatility Index in the Spotlight
True or False: Investor anxiety is at an all-time high. Whaley addresses this issue and common misperceptions surrounding the VIX. [Read More]
> Derivatives: Villain or Scapegoat?
Many pundits have cast derivatives as the primary villain in the current economic crisis. "Not so fast," says Whaley. "First, understand the basics. You'll be surprised." [Read More]
Hedge Fund Restrictions Carry Costs for Investors
Amidst staggering losses, hedge fund managers are increasingly putting the brakes on investor attempts to withdraw funds. Nick Bollen, E. Bronson Ingram Associate Professor in Finance, finds that these new restrictions come with a heavy price tag for investors—up to 15 percent of the initial investment. [Read More]
Lobbying Expenditures Yield Big Returns for Companies
When it comes to lobbying, more firms are getting into the game. Recent research by David Parsley, Professor of Economics and Finance, provides a picture of just how profitable such activities can be. [Read More]
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