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  • November 2007
  • Background Note

Asset Allocation I

By: Joshua D. Coval, Erik Stafford, Rodrigo Osmo, John Jernigan, Zack Page and Paulo Passoni
The goal of these simulations is to understand the mathematics of mean-variance optimization and the equilibrium pricing of risk if all investors use this rule with common information sets. Simulation A focuses on five to 10 years of monthly sector returns that are... View Details
Keywords: Asset Pricing; Capital; Investment Return; Risk Management; Mathematical Methods
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Coval, Joshua D., Erik Stafford, Rodrigo Osmo, John Jernigan, Zack Page, and Paulo Passoni. "Asset Allocation I." Harvard Business School Background Note 208-086, November 2007.
  • January 2008
  • Background Note

Equity Options

By: Joshua Coval and Erik Stafford
The goal of this simulation is to understand the reliance of option values on volatility. When an investor trades an option, they are essentially trading volatility. Therefore, much of the focus in this lesson is on forecasting volatility. Students are able to use two... View Details
Keywords: Volatility; Forecasting and Prediction; Stock Options; Investment Return; Price; Market Transactions; Mathematical Methods; Value
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Coval, Joshua, and Erik Stafford. "Equity Options." Harvard Business School Background Note 208-118, January 2008.
  • January 2008
  • Background Note

Equity Derivatives

By: Joshua Coval and Erik Stafford
The goal of these simulations is to understand the dynamic replication technique behind the Black-Scholes/Merton options model. The simulations focus on a single stock and a risk-free discount bond, which are used to replicate a contingent payoff. The underlying stock... View Details
Keywords: Equity; Bonds; Stocks; Price; Risk Management
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Coval, Joshua, and Erik Stafford. "Equity Derivatives." Harvard Business School Background Note 208-117, January 2008.
  • January 2008
  • Background Note

Convertible Arbitrage

By: Joshua Coval and Erik Stafford
The goal of this simulation is to understand how convertible bonds can be viewed as a portfolio of simpler securities and to introduce an over-the-counter market. The convertible bonds that are available during the simulation are at-the-money and in-the-money so that... View Details
Keywords: Bonds; Investment Portfolio; Price; Risk Management; Mathematical Methods
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Coval, Joshua, and Erik Stafford. "Convertible Arbitrage." Harvard Business School Background Note 208-116, January 2008.
  • 2005
  • Working Paper

Asset Fire Sales (and Purchases) in Equity Markets

By: Joshua Coval and Erik Stafford
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Coval, Joshua, and Erik Stafford. "Asset Fire Sales (and Purchases) in Equity Markets." Harvard Business School Working Paper, No. 05-077, May 2005.
  • April 2020
  • Article

A Theory of Experimenters: Robustness, Randomization, and Balance

By: Abhijit Banerjee, Sylvain Chassang, Sergio Montero and Erik Snowberg
This paper studies the problem of experiment design by an ambiguity-averse decisionmaker who trades off subjective expected performance against robust performance guarantees. This framework accounts for real-world experimenters’ preference for randomization. It also... View Details
Keywords: Experiment Design; Experimenters; Theory; Performance
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Banerjee, Abhijit, Sylvain Chassang, Sergio Montero, and Erik Snowberg. "A Theory of Experimenters: Robustness, Randomization, and Balance." American Economic Review 110, no. 4 (April 2020): 1206–1230.
  • March 2011
  • Supplement

Valuation of AirThread Connections, Faculty Spreadsheet Supplement (Brief Case)

By: Erik Stafford and Joel L. Heilprin
Keywords: Present Value; Tax Accounting; Capital Costs; Synergy; Telephony; Wireless Technologies; Assets; Cost of Capital; Valuation; Capital Structure; Cash Flow; Communication; Taxation; Accounting; Wireless Technology
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Stafford, Erik, and Joel L. Heilprin. "Valuation of AirThread Connections, Faculty Spreadsheet Supplement (Brief Case)." Harvard Business School Spreadsheet Supplement 114-268, March 2011.
  • June 2009 (Revised March 2010)
  • Supplement

Hansson Private Label, Inc.: Evaluating an Investment in Expansion, Teaching Note Spreadsheet (Brief Case)

By: Erik Stafford and Joel L. Heilprin
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Stafford, Erik, and Joel L. Heilprin. "Hansson Private Label, Inc.: Evaluating an Investment in Expansion, Teaching Note Spreadsheet (Brief Case)." Harvard Business School Spreadsheet Supplement 094-026, June 2009. (Revised March 2010.)
  • September 2010 (Revised May 2012)
  • Case

Harvard Management Company (2010)

By: Andre F. Perold and Erik Stafford
In February 2010, Jane Mendillo, CEO of Harvard Management Company, was reflecting on the list of issues facing Harvard University's endowment in preparation for the upcoming board meeting. The recent financial crisis had vividly highlighted several key issues... View Details
Keywords: Financial Crisis; Higher Education; Asset Management; Financial Liquidity; Investment Portfolio; Risk Management; Education Industry; Financial Services Industry; Massachusetts
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Perold, Andre F., and Erik Stafford. "Harvard Management Company (2010)." Harvard Business School Case 211-004, September 2010. (Revised May 2012.)
  • January 2008
  • Teaching Note

Options (TN)

By: Joshua D. Coval and Erik Stafford
Teaching Note for [208116], [208117], [208118], and [208119]. View Details
Keywords: Stock Options
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Coval, Joshua D., and Erik Stafford. "Options (TN)." Harvard Business School Teaching Note 208-120, January 2008.
  • January 2008
  • Teaching Note

Credit Risk: Valuing Risky Debt & CDOs (TN)

By: Joshua D. Coval and Erik Stafford
Teaching Note for [208111] and [208113]. View Details
Keywords: Price; Credit; Risk Management; Investment; Bonds; Borrowing and Debt; Decisions
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Coval, Joshua D., and Erik Stafford. "Credit Risk: Valuing Risky Debt & CDOs (TN)." Harvard Business School Teaching Note 208-112, January 2008.
  • November 2007
  • Background Note

Event Arbitrage

By: Joshua D. Coval and Erik Stafford
The event arbitrage module includes two simulation sessions. The first simulation focuses on analyzing and evaluating individual merger transactions, while the second simulation emphasizes managing a portfolio of individual positions and the limitations of arbitrage... View Details
Keywords: Mergers and Acquisitions; Capital Markets; Financial Management; Investment Portfolio; Risk Management
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Coval, Joshua D., and Erik Stafford. "Event Arbitrage." Harvard Business School Background Note 208-090, November 2007.
  • November 2007
  • Teaching Note

Asset Allocation I, II & III (TN)

By: Joshua D. Coval and Erik Stafford
Keywords: Resource Allocation; Assets
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Coval, Joshua D., and Erik Stafford. "Asset Allocation I, II & III (TN)." Harvard Business School Teaching Note 208-089, November 2007.
  • March 2008
  • Teaching Note

2006 Hurricane Risk (TN)

By: André Perold and Erik Stafford
Teaching Note for [207075]. View Details
Keywords: Decision Choices and Conditions; Loss; Investment; Insurance; Natural Disasters; California
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Perold, André, and Erik Stafford. "2006 Hurricane Risk (TN)." Harvard Business School Teaching Note 208-140, March 2008.
  • January 2004
  • Article

Investigating the Economic Role of Mergers

By: Gregor Andrade and Erik Stafford
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Andrade, Gregor, and Erik Stafford. "Investigating the Economic Role of Mergers." Journal of Corporate Finance 10, no. 1 (January 2004): 1–36.
  • March 2011
  • Supplement

Valuation of AirThread Connections, Spreadsheet Supplement (Brief Case)

By: Erik Stafford and Joel L. Heilprin
Keywords: Present Value; Tax Accounting; Capital Costs; Synergy; Telephony; Wireless Technologies; Assets; Cost of Capital; Valuation; Capital Structure; Cash Flow; Communication; Taxation; Accounting; Wireless Technology
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Stafford, Erik, and Joel L. Heilprin. "Valuation of AirThread Connections, Spreadsheet Supplement (Brief Case)." Harvard Business School Spreadsheet Supplement 114-267, March 2011.
  • November 2007
  • Background Note

Bayesian Estimation & Black-Litterman

By: Joshua D. Coval and Erik Stafford
Describes a practical method for asset allocation that is more robust to estimation errors than the traditional implementation of mean-variance optimization with sample means and covariances. The Bayesian inspired Black-Litterman model is described after introducing... View Details
Keywords: Asset Management; Investment Portfolio; Mathematical Methods
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Coval, Joshua D., and Erik Stafford. "Bayesian Estimation & Black-Litterman." Harvard Business School Background Note 208-085, November 2007.
  • June 2005 (Revised October 2007)
  • Teaching Note

The Law of One Price (TN)

By: Joshua D. Coval and Erik Stafford
Teaching Note to (2-205-079). View Details
Keywords: Price
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Coval, Joshua D., and Erik Stafford. "The Law of One Price (TN)." Harvard Business School Teaching Note 205-080, June 2005. (Revised October 2007.)
  • 29 Jan 2013
  • First Look

First Look: Jan. 29

reaping the benefits of FDI (which relate to when FDI will generate growth) and (2) the mechanisms by which FDI creates positive externalities (which relate to how FDI generates growth). Technology and Innovation Management... View Details
Keywords: Sean Silverthorne
  • Winter 2022
  • Article

Distributing a Billion Vaccines: COVAX Successes, Challenges, and Opportunities

By: Eric Budish, Hannah Kettler, Scott Duke Kominers, Erik Osland, Canice Prendergast and Andrew A. Torkelson
By January 2022, the COVAX international vaccine collaboration had allocated over a billion vaccines to over 140 countries. We describe and review the allocation process chosen, which reflected both an objective of equitably distributing vaccines across the world and... View Details
Keywords: Vaccines; Pandemics; Health Care and Treatment; Health Pandemics; Distribution; Supply Chain; Equality and Inequality
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Budish, Eric, Hannah Kettler, Scott Duke Kominers, Erik Osland, Canice Prendergast, and Andrew A. Torkelson. "Distributing a Billion Vaccines: COVAX Successes, Challenges, and Opportunities." Oxford Review of Economic Policy 38, no. 4 (Winter 2022): 941–974.
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