It is no secret that China has the world's fastest-growing economy. The trick is how average investors can tap into the opportunities it affords. Investment adviser Malkiel explains why and how the Chinese economy is poised for significant gains in the near future. He highlights not only Chinese...

We study the role of information in asset pricing models with long-run cash flow risk. When investors can distinguish short- from long-run consumption risks (full information), the model generates a sizable equity risk premium only if the equity term structure slopes up, contrary to the data. In...