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Valentin Milinov, Tsetan Pavlov
Opportunities to Improve the Portfolio Performance Based on Dividend Strategies and Equity Home Bias
Summary:
The article examines the equity home bias puzzle and the "Dogs of the Dow" dividend strategy under conditions of the Bulgarian capital market. It was found out that local investors hold 74.1% of their portfolios in domestic stocks, although ICAPM suggests weight of 0.007%, and the "Dogs of the Dow" strategy generates annual risk-adjusted hyper-profitability of 11.18%. Following the dividend strategy, combined with good international diversification provides good opportunities to improve portfolio performance.
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Stoyan Prodanov, Tsetan Pavlov
Comparative Analysis of the Leading Consumption-Based
Asset Pricing Models
Summary:
The article analyzes in depth the consumption-based asset pricing models, and displays most perspective contemporary trends in the field. A conceptual framework of models has been originally presented linking macroeconomic and financial relationships, and mathematical basis of the classic CCAPM has been developed. The paper also brings out the leading approaches for modification of the basic model, overcoming some of its shortcomings, and analyzes the advantages, disadvantages and the ability of consumption-based modern models to recreate empirical correlations in profitability and the risk of financial assets. The leading conclusion of the article is that there is still no convincing rational consensus model to reproduce adequately the characteristics of financial markets. From an econometric perspective, the closest in this endeavour is the model of long-term risk of Bansal and Yaron (2004) and its modifications.
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Metody Kanev
THE OVERALL FACTOR OF ALL
GOOD – THE WELL-BEHAVED
AND EDUCATED PERSON
Summary:
The article deals with the issue set as its title. It is essential for the efficiency of any other activity and our civil behaviour. As it is in many other countries, it could become a reality in our country as well, provided that the central government and private funds spending on science and education grows at a faster rate than the budget spending in any other aspect and its quality is improved proportionally. This thesis is corroborated through conceptualization of the issue as per its status quo in the current context and explanation of its importance for the overall social development.
