Tuesdays are all about academic (and practitioner) literature at Abnormal Returns. You can check out last week’s links including a look at why CEOs get paid for good luck.

Quote of the Day

"In our view, holding extreme growth stocks has historically impaired capital over horizons so long that some investors were not around to see a recovery. We would call that real risk—a risk that we think is swept under the rug in a Sharpe ratio that measures the frequency of transient shocks rather than capturing the risk of long-term capital impairment."

(Brian Chingono and Nick Schmitz)

Chart of the Day

Government bonds have nothing left to give to investors.