Junk bonds prove there's nothing magical in a Aaa bond rating.

Junk bonds prove there's nothing magical in a Aaa bond rating.

Arbitrage proof has since been widely used throughout finance and economics.

Everyone recognizes that's a joke because obviously the number and shape of the pieces doesn't affect the size of the pizza. And similarly, the stocks, bonds, warrants, etc., issued don't affect the aggregate value of the firm.

But in practice, if often comes down to not suffering a loss as big as the huge gain you made a while ago.

... Any pension fund manager who doesn't have the vast majority-and I mean 70% or 80% of his or her portfolio-in passive investments is guilty of malfeasance, nonfeasance or some other kind of bad feasance!

As an economics undergraduate, I also worked on a part-time basis in Cambridge, Massachusetts, for a company that was advising customers about portfolio decisions, writing reports.