Our best finance theories predict riskier assets gain high returns. From the July Journal of Financial Economics: Previous studies typically find a statistically insignificant relation between the market risk premium and its expected volatility. … {But] even 100 years of data constitute a small sample … Using the nearly two century history of U.S. equity market returns [1802-2003] … I estimate a positive and statistically significant risk return tradeoff.
Sometimes Learning Is Very Slow
Sometimes Learning Is Very Slow
Sometimes Learning Is Very Slow
Our best finance theories predict riskier assets gain high returns. From the July Journal of Financial Economics: Previous studies typically find a statistically insignificant relation between the market risk premium and its expected volatility. … {But] even 100 years of data constitute a small sample … Using the nearly two century history of U.S. equity market returns [1802-2003] … I estimate a positive and statistically significant risk return tradeoff.
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