Market Hypothesis sense. The paper tries to show that this so-called excess volatility is to a large extend the result of the … employing the Gordon Growth Model and using an estimation process for the dividend growth rate that was suggested by Barsky and …, constant dividend growth rates as well as non-variable discount rates. It is shown that indeed volatility declines considerably …

1 Abstract -- 2 Introduction -- 3 Chapter I: Literature on the subject of excess volatility -- 4 Chapter II: Excess … volatility beyond discount rates -- 5 Chapter III: Evidence of excess volatility in the Eurozone market -- 6 Conclusions. …The phenomenon of excess volatility in the context of share prices and of the term structure of interest rates has been …