with empirical evidence, the model shows that (a) value stocks are those with higher cash-flow risk; (b) the size of the … value premium is larger in "bad times," due to time variation in risk preferences; (c) the unconditional CAPM fails, because …

find that advisors induce their clients to take more risk, thereby raising expected returns. On the other hand, we find … limited evidence of customization: advisors direct clients into similar portfolios independent of their clients' risk … 2.7% each year in fees and thus gives up all of the equity premium gained through increased risk-taking …

yield, the frictionless risk-free rate, and default risk reveals that the covariance between stock returns and the …We document that the convenience yield of U.S. Treasuries exhibits properties that are consistent with a hedging … perspective of safe assets. The convenience yield tends to be low when the covariance of Treasury returns with the aggregate stock …

to earn higher returns, or investing more broadly to reduce risk through diversification. Using a novel, deal …, but are also the least risky. Returns and risk are both increasing in industry or geographic concentration. And while GP … deal selection, to seek risk-adjusted fund-level returns …