What we’re reading (6/27)
“Harry Markowitz, Nobel-Winning Pioneer Of Modern Portfolio Theory, Dies At 95” (New York Times). “The basic concepts of portfolio theory came to Dr. Markowitz one afternoon in the library while reading an investment book by the economist John Burr Williams. ‘Williams proposed that the value of a stock should equal the present value of its future dividends,’ Dr. Markowitz wrote in a brief autobiography for the Nobel committee. ‘Since future dividends are uncertain, I interpreted Williams’s proposal to be to value a stock by its expected future dividends.’ But if investors were interested only in the expected values of securities, he figured, then that implied that the best, or maximized, portfolio would consist of the single most appealing stock. ‘This, I knew, was not the way investors did or should act,’ he concluded. ‘Investors diversify because they are concerned with risk as well as return.’”
“CFA Level I Pass Rate Rises To 39%, Closer To Historic Average” (Bloomberg). “The pass rate for the first level of the chartered financial analyst exam inched closer to its historic average, with test-takers benefiting from another period free of the pandemic-related disruptions that became common after the Covid-19 outbreak.”
“The Great Grift: More Than $200 Billion In COVID-19 Aid May Have Been Stolen, Federal Watchdog Says” (Associated Press). “More than $200 billion may have been stolen from two large COVID-19 relief initiatives, according to new estimates from a federal watchdog investigating federally funded programs that helped small businesses survive the worst public health crisis in more than a hundred years.”
“Extreme Travel Is Inspiring New Types Of Insurance” (DealBook). “The number of businesses aiming to mitigate the danger and potential emergency costs of extreme travel are starting to rise. Some offer rescue and medical evacuation from remote locations. Others are working out new types of insurance policies for pursuits like space travel.”
“UBS Preparing To Cut Over Half Of Credit Suisse Workforce” (Bloomberg). “UBS Group AG is planning to cut more than half of Credit Suisse Group AG’s 45,000-strong workforce starting next month as a result of the bank’s emergency takeover.”
