Tag: personal-finance
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What is the essence of the “Essence of the Cross Section?”
This paper tackles a simple but difficult question: with so many predictors for stock returns, how do we know which ones truly matter? Traditionally, the way to test a signal is straightforward: sort stocks into portfolios based on that signal and see how average returns differ. Sort on momentum? Momentum looks important. Sort on size?…
Sina Seyfi 