i.e. there is no noise trader risk. Instead, traders expect that new rational entrants with different information in the …

traditional approach is that measures the risk and return tradeoff in terms of mean and variance of final wealth. However, there …

consider human capital risk, the international diversification puzzle is worse than we think, is based on an econometric …: considering the human capital risk does not unequivocally worsen the puzzle and in some cases helps explaining it. …

assumptions. We accomplish this by relying on the plausible joint frictions of immediacy risk (excution risk) and asset … frictionless benchmark case, volatility is affected at a RE Equlibrium, and that asset prices are likely to overreact to news …

amplification of systemic risk. We caution against focusing on the accounting rule in isolation, and instead emphasize the …-based information, our results indicate that regulatory simplicity may be preferred to the complexity of risk-weighted capital ratios … that gives rise, through interactions with accounting rules, to distorted risk-taking incentives and potential build-up of …

interest rates, and countercyclical market prices of risk when the elasticity of intertemporal substitution (EIS) is greater …