The equity premium puzzle
18 min read
Rate this book:
About This Book
Over two decades ago, Mehra and Prescott (1985) challenged the finance profession with a poser: the historical US equity premium is an order of magnitude greater than can be rationalized in the context of the standard neoclassical paradigm of financial economics. This regularity, dubbed "the equity premium puzzle," has spawned a plethora of research efforts to explain it away. In this review, the author takes a retrospective look at the original paper and explains the conclusion that the equity premium is not a premium for bearing non-diversifiable risk.
Buy This Book
Amazon
Ebook
→
Bookshop.org
Supports indie bookshops
→
Apple Books
Ebook
→
Open Library
Borrow
Free to borrow
→
As an Amazon Associate and Bookshop.org affiliate, BookOrb earns from qualifying purchases.
Write a Review
Sign in to write a review.
More by Rajnish Mehra
A note on consumer surplus with quality variation
A note on the valuation of stochastic cash flows
A test of the intertemporal as
A test of the intertemporal asset pricing model
An equilibrium theory of the s
An equilibrium theory of the sources of systematic risk and asset pricing
Auctions - Theory and Possible
Auctions - Theory and Possible Applications to Economies in Transition
Consumer surplus with quality
Consumer surplus with quality variation