A portfolio is a collection of financial investments like stocks, bonds, commodities, cash, and cash equivalents, including closed-end funds and exchange-traded funds (ETFs). People generally believe that stocks, bonds, and cash comprise the core of a portfolio....

## Articles by

## Investment lessons from Blackjack

It is a very simple game, one that most people are familiar with, “Blackjack” or “21’en” in Dutch. The rules are easy to remember and are easily learned by children. Since there is a gambling element in Blackjack, the probabilities and expectations can be analyzed....

## Phillips curve

There are many theories trying to describe the dynamics of economies. One of the first economists to think about this was Adam Smith. He laid the foundation of classical economics and thought of the economy as a free market. Then came Alfred Marshall, who was one of...

## Discovering the Frequencies in Financial Markets

Wavelet analysis stems from the 19th century when Joseph Fourier studied the heat equation. From his work, a foundation was set for Fourier transformations (FT). However, FT requires conditions such as stationarity of the data set and it only gives frequency...

## Simpson’s Paradox

In 1951 Edward Simpson published a paper discussing the interpretation of contingency tables. He discusses a phenomenon that is still occurring in today’s statistics. It is called after his own name, Simpson’s Paradox. An Example Simpson’s Paradox can be...

## The ever expanding universe

For thousands of years, astronomers wrestled with basic questions about the size and age of the universe. The ancient Greeks recognized that it was difficult to imagine what an infinite universe might look like. But they also wondered that if the universe were finite,...

## Why Formula 1 is crucial for our safety

Many of you have probably watched the most recent race in Imola, where Max Verstappen achieved his 11th career win. During the Grand Prix, two drivers crashed into each other at 300 kilometres per hour and caused the race to be red-flagged. Luckily, the drivers could...

## Interview with TKP

TKP, have you already heard of them? When you are a student in Groningen, the answer is probably yes. You probably have encountered their famous ‘red tower’ on the ring road numerous times. However, there are also a lot of students who have heard of them but still do...

## Is OLS a thing of the past?

[latexpage] One of the most popular regression methods an econometrician learns is the Ordinary Least Squares (OLS). It is a simple and elegant way of estimating parameters in linear regression. However, there is another technique to perform linear regression using...

## The medical test paradox

[latexpage] Testing has been quite a significant subject during this pandemic. Around 30.000 people a day are being tested in the Netherlands alone, so it is quite important that such a test can accurately predict whether someone actually has the disease. However, an...