Recent work on the price behavior of French common stocks concluded that the evidence is consistent with equity pricing according to the Capital Asset Pricing Model (CAPM). In this paper we re-examine the evidence on the risk-return characteristics of French equity and show that the estimated...

The Theil-Barbosa framework of "rational random behavior" in the theory of consumer demand involves a decision-maker who minimizes the sum of a loss functional u and the cost of information c(I). The definition of information I is that used in the information theory literature associated with...