We are pleased to announce that our faculty member, Prof. Xiao QIAO, has contributed a chapter to the newly published book, Exponential Wealth: Centuries of Stock and Bond Returns, published by the prestigious CFA Institute Research Foundation. Representing the only contributor from a Hong Kong university, Prof. Qiao’s work highlights our department’s commitment to leveraging data science and quantitative analysis for high-impact financial research.
In this monograph, Prof. Qiao’s chapter delivers important insights into long-term market performance, establishing that commodity futures function as an independent asset class. Drawing from a unique historical dataset spanning 155 years, the main findings include:
- - Sustained Risk Premium: Commodity futures have earned a risk premium of 5.5% over 155 years.
- - Equity Outperformance: Commodity futures outperformed U.S. stocks in 2 out of every 5 years.
- - Inflation Hedge: Returns to commodity futures exceeded an index of U.S. inflation by more than 6% per annum.
This contribution cements our department’s thought leadership within a leading professional society in the CFA Institute, which sets global standards for investment education, accreditation, and industry best practices.
- -CFA Institute Monograph: Official Book Page
- -Amazon: Amazon Product Page