the fund company to use its judgment to maximize risk-adjusted fund returns. A fund company, however, in its desire to …

decomposition of risk that comes from real and monetary sides of the economy. Equity premium, volatility of the risk-free rate …, Sharpe ratio, and inflation risk premium are calibrated to quarterly historical U.S. data. Because of non … empirically reasonable values of the relative risk aversion parameter, but results in the low equity premium. However, the results …

the valuation equation. One measure of sentiment is assigned to capture risk aversion effects, while a broader …