... event examined. This paper aims to create a fiscal fragility index by applying the portfolio theory method, which is the most contemporary technique in index creation. What is less common in the literature is the use of different weighting methods to compare how well the methods capture the fiscal...

.... The normal odds of this happening, if one traded dollars and yen every day since the Big Bang 15 billion years ago, are not once. The edifice of modern finance (i.e. modern portfolio theory) hangs on the following shaky assumptions: Bachelier (1900) is correct, and variance and standard deviations...