In considering a long-term investment in a common stock, an investor wants an estimate of the stock's long-run risk premia (and thus the long-run expected returns). Similarly, in evaluating a capital investment project, a firm seeks a reliable estimate of the required return on the proposed...

At least early in the financial crisis, the high rate of foreclosures seemed to be due more to households' overreaching than to predatory lending. A disproportionate number of those being foreclosed on were well-educated, well-off and relatively young people.