TY - JOUR T1 - Practical Applications of Asset Price Bubbles and the Land of Oz JF - Practical Applications SP - 1 LP - 3 DO - 10.3905/pa.2016.3.4.150 VL - 3 IS - 4 AU - Jarrow Robert A2 - Connett, Wendy Y1 - 2016/04/30 UR - https://pm-research.com/content/3/4/1.8.abstract N2 - Asset Price Bubbles and the Land of Oz Jarrow Robert In Asset Price Bubbles and the Land of Oz , Robert Jarrow of Cornell University and the Kamakura Corporation argues that most stocks have small price bubbles most of the time, and his research shows that most stocks have small price bubbles representing 1% to 25% of their value.“What my research has done is to allow models to include bubbles,” Jarrow states. Factoring in bubbles will influence investment decisions, including the way in which portfolio managers price and hedge options, he emphasizes.TOPICS: Analysis of individual factors/risk premia, theory ER -