Financial Mathematics Seminar: Fractional Earnings Contracts


Location: 258 Hurley Hall

Speaker: Peter Kelly
Yale University

Investors often complain that, "The market does not understand!" "There is mispricing!"  Peter Kelly argues that this is the natural result of the beauty contest environment. Using a simple framework, he will show how introducing contracts that are explicitly tied to fundamentals that may improve the efficiency of financial markets and lower the cost of capital for firms.


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