In an economy with time-varying investment opportunities, the changes in technology prospects affect aggregate consumption and individual firm's future dividends, and lead to systematic technology risk. We construct a technology factor to track the changes in technology prospects measured by...

In an economy with time-varying investment opportunities, the changes in technology prospects affect aggregate consumption and individual firms' future dividends, and may lead to systematic risk. We construct a technology factor to track the changes in technology prospects measured by U.S....