1. Eugene F. Fama and Kenneth R. French, “Luck versus Skill in the Cross Section of Mutual Fund Returns,” Journal of Finance 65(5) (October 2010).
3. Stephen D. Hassett, “The RFP Model for Calculating the Equity Market Risk Premium and Explaining the Value of the S&P with Two Variables,” Journal of Applied Corporate Finance 22(2) (Spring 2010): 118–130.
4. Justin Fox, The Myth of the Rational Market: History of Risk, Reward and Delusion on Wall Street (New York: Harper Collins, 2009), 199.
5. Daniel Kahneman and Amos Tversky, “Advances in Prospect Theory: Cumulative Representation of Uncertainty.” Journal of Risk and Uncertainty 5 (1992): 297–323.
6. If this seems confusing, assume you have $100. If you choose to flip a coin, you end up with your original $100 plus your winnings, for a total of $325. If you lose, you have $0. If you don't flip, you are guaranteed to keep your $100.
2. Franco Modigliani and Merton H. Miller, “Dividend Policy, Growth, and the Valuation of Shares.” Journal of Business 34(4) (1961); “The Sveriges Riksbank Prize in Economic Sciences in Memory of Alfred Nobel 1985,” Nobelprize.org, November 16, 2010, ...