Conventional finance models treat risky-asset prices as quot;fully (information) revealing.quot; Less work exists on how prices become information revealing. Our answer focuses on the micro foundations of information acquisition and the role of human capital in quot;asset management.quot; We...

Risky-asset prices are conventionally modeled as quot;fully (information-) revealingquot;. Much less work has been done on how prices get to reveal information. Following the quot;noisy-pricesquot;, rational-expectations approach, our answer focuses on the micro-foundations of information...

In this paper we solve the stochastic portfolios-consumption control problem under the assumption that individuals follow precommitment strategies over finite intervals of time. This precommitment approach is an alternative to Merton's (1969) continuous-time stochastic dynamic control problem...