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Long-Run Risks and Financial Markets / Ravi Bansal.

NBER Working papers Available online

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Format:
Book
Author/Creator:
Bansal, Ravi.
Contributor:
National Bureau of Economic Research.
Series:
Working Paper Series (National Bureau of Economic Research) no. w13196.
NBER working paper series no. w13196
Language:
English
Physical Description:
1 online resource: illustrations (black and white);
Place of Publication:
Cambridge, Mass. National Bureau of Economic Research 2007.
Summary:
The recently developed long-run risks asset pricing model shows that concerns about long-run expected growth and time-varying uncertainty (i.e., volatility) about future economic prospects drive asset prices. These two channels of economic risks can account for the risk premia and asset price fluctuations. In addition, the model can empirically account for the cross-sectional differences in asset returns. Hence, the long-run risks model provides a coherent and systematic framework for analyzing financial markets.
Notes:
Print version record
June 2007.

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