Since the establishment of the Shanghai Stock Exchange (SHSE) in 1990 and the Shenzhen Stock Exchange (SZSE) in 1991, China's stock markets have expanded rapidly. Although this rapid growth has attracted considerable academic interest, few studies have examined the ability of conventional financial models to predict the share price movements of Chinese… (More)
This paper provides overviews of two major concepts and methodologies-Scenario Planning (SP) from Strategic Management and Real Options Analysis (ROA) from Finance. The paper draws on the KUU (Known, Unknown, and Unknowable) framework to demonstrate the commonalities and differences among these two approaches and calls for their synergistic use.
Some studies ®nd the dollar-cost averaging investment strategy to be sub-optimal from a mean variance expected utility of wealth perspective. Statman [The Journal of Portfolio Management (1995) fall] introduces a behavioral rationale for the persistence of dollar-cost averaging. Using prospect theory to create an alternative utility function that does not… (More)