Economics, Econometrics and Finance
4 years ago

Equity Premium Puzzle Solved: Rational Beliefs Equilibrium Theory Explains All!

RePEc: Research Papers in Economics
The Equity Premium Is No Puzzle
Mordecai Kurz, Andrea Beltratti

Paper Summary

The equity premium puzzle is not really a puzzle when viewed through the lens of Rational Beliefs Equilibrium theory. This theory suggests that there is no mystery surrounding the equity premium.

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