Chris Lamoureux, Diamond Professor of Finance at the University of Arizona

About

As of May 25, 2026, I am retired. I was a finance professor for 41 years before retiring (now emeritus). My interests include how we can optimally use data to make decisions. Naturally a current concern is asset management in retirement, as well as financial management in retirement more broadly.

The screen shot above was taken in March 2020, in the early days of the Covid-19 pandemic in my office in McClelland Hall. The Bloomberg screens depict the extreme market reactions to the pandemic's onset. I always enjoyed talking with the media about financial markets, unforunately they mostly sought my perspective when the market was in some crisis or another. Over my professorial career that includes October 1987 and the meme-stock era of 2022.

Selected Research

The Gibbs Posterior and Parametric Portfolio Choice

My most recent and current favorite paper. You know your decision problem and you have data. Skip the intermediate step of modeling the data ganerating process and update your decision using the data. I was inspired by Bissiri, Holmes, and Walker's 2016 JRSSB "A General Framework for Updating Belief Distributions," which is a marvelous paper.

March 2026

An Empirical Assessment of Characteristics and Optimal Portfolios

This is a machine learning approach to Brandt, Santa-Clara and Valkanov's brilliant parametric portfolio algorithm. Here we examine and manage estimation risk in the absence of a likelihood using out of sample validation (regularization).

Review of Asset Pricing Studies, 2024.

Temporary Components of Stock Returns: What do the Data Tell Us?

This is my evolution as a Bayesian. This was motivated by Chris Sims' critiques of unit root tests, and the beauty of Bayesian data analysis. Usually we characterize the data through the lens of a model. If we're not careful, the model may overpower the data.

Review of Financial Studies, 1996.

My most cited work is a set of four papers that Bill Lastrapes and I wrote in the late 80s, and early 90s on volatility dynamics. Bill and I both started as assistant professors at LSU in 1985--Bill in Economics and me in Finance. I was playing around with the idea of time deformation, influenced heavily by Peter Clark's 1973 Econometrica paper and Jim Stock's 1988 JASA paper, as well as earlier work of Mandelbrot. I wrote a draft paper that compared MINQUE, absolute return and implied volatilities, but it lacked some structure. Bill had used GARCH in his dissertation at UNC, and as we started talking we realized that GARCH would be fun to bring to stock return data. And the following four papers are the result:

  • Heteroskedasticity in Stock Return Data : Volume versus GARCH effects

    Journal of Finance, 1990.

  • Persistence in Variance, Structural Change and the GARCH Model

    Journal of Business and Economic Statistics, 1990.

  • Endogenous Trading Volume and Momentum in Stock-Return Volatility

    Journal of Business and Economic Statistics, 1994.

  • The Market Reaction to Stock Splits

    I was always intrigued by trading volume, as reflected in some of my earliest papers. I looked at stock splits in one of my earliest post-dissertation papers, and examined how trading volume behaved. I thought to link the fact that return variance goes up after a split to tax-timing options.

    Journal of Finance, 1987.

    Data & Tools

    Spreadsheets, datasets, and teaching materials, freely available for research and classroom use.

    XLSX

    Option Pricing Calculator

    Black-Scholes and binomial models with sensitivity analysis. Excel.

    Download
    XLSX

    Term Structure Bootstrapping

    Spreadsheet tool for fitting yield curves from Treasury data.

    Download
    PDF

    Lecture Notes: Asset Pricing

    Course notes from Arizona PhD-level asset pricing seminar.

    Download
    CSV

    Sample Dataset

    Description of dataset and intended use.

    Download

    Curriculum Vitae

    Download CV (PDF)

    Contact

    Chris.Lamoureux.az@gmail.com