How to Exploit Mispriced Securities
Lecture no. 18 from the course: Advanced Investments
Taught by Professor Steve L. Slezak | 29 min | Categories: The Great Courses Plus Online Economics & Finance Courses
Explore three steps for exploiting mispriced securities. First, investigate the strategy of short selling. Then, develop a measure of mispricing called alpha. Finally, use information about a stock’s alpha and its volatility to form an optimal risky portfolio.