This paper re-examines the effects of nominal contracts on the relationship between unanticipated inflation and individual stock's rate of return. This study differs in three main ways from previous research. First, announced inflation data are used to examine the effects of unanticipated...

Among the numerous familiar sets of specific assumptions sufficient to derive mean-variance portfolio behavior from more general expected utility maximization in continuous time, the assumptions of constant relative risk aversion and joint normally distributed asset return assessments are also...

Empirical evidence shows that federal budget deficits have historically tended to increase stock market prices. Because deficits rose to unprecedented levels in the 1980s, however, increasing concern about their impact on interest rates and inflation may have contributed to the October 1987...