This chapter reviews the behavior of financial asset prices in relation to consumption. The
chapter lists some important stylized facts that characterize US data, and relates them to …

Real risk-free interest rates have trended down over the past 30 years. Puzzlingly in light of
this decline,(1) the return on private capital has remained stable or even increased, creating …

Our article comprehensively reexamines the performance of variables that have been
suggested by the academic literature to be good predictors of the equity premium. We find …

We model consumption and dividend growth rates as containing (1) a small long‐run
predictable component, and (2) fluctuating economic uncertainty (consumption volatility) …

Comparing US gross domestic product to the sum of measured payments to labor and
imputed rental payments to capital results in a large and volatile residual or “factorless” …

This short volume originates in the need to provide a scientific foundation for the advice
offered by financial planners to long-term investors-individuals saving for retirement, or …

We employ a certainty-equivalence framework to analyze the cost, value and
pay/performance sensitivity of non-tradable options held by undiversified, risk-averse …

We find that on average, an announcement of rising unemployment is good news for stocks
during economic expansions and bad news during economic contractions. Unemployment …

Navigate equity investments and asset valuation with confidence Equity Asset Valuation,
Fourth Edition blends theory and practice to paint an accurate, informative picture of the …

Our paper suggests a simple, recursive residuals (out-of-sample) graphical approach to
evaluating the predictive power of popular equity premium and stock market time-series …