with this hypothesis, we show that a one-standard-deviation increase in aggregate uncertainty amplifies the predictive … ability of sentiment for market returns by two to four times relative to when uncertainty is at its mean. We find similar … sensitive to sentiment and for anomaly returns is substantially larger in times of higher uncertainty. The results hold for both …

uncertainty, given that their interaction should be incorporated into the valuation process. In response, financial theory has … proposed valuation approaches that allow different sources of uncertainty to be represented by a consolidated estimate of … treatment that incorporates the dynamics of each uncertainty can be given. In this context, there are different proposals that …

uncertainty. We construct a notion of a modeluncertainty-induced utility function and show that model uncertainty increases …-Requejo (2000) to compute lower and upper gooddeal bounds in the presence of model uncertainty. We illustrate the methodology using … some numerical examples. -- asset pricing theory ; good-deal bounds ; Knightian uncertainty ; model uncertainty …

uncertainty, which cannot be reduced to a probability distribution, underpins outcomes in the stock market. This finding reveals … the consumption-based specification of the risk premium. The relevance of Knightian uncertainty is inconsistent with all … Expectations Hypothesis, which recognizes the relevance of Knightian uncertainty in driving outcomes in real-world markets. Their …

uncertainty, which cannot be reduced to a probability distribution, underpins outcomes in the stock market. This finding reveals … the consumption-based specification of the risk premium. The relevance of Knightian uncertainty is inconsistent with all … Hypothesis, which recognizes the relevance of Knightian uncertainty in driving outcomes in real-world markets. Our novel data is …