assessment of the associated level of risk. This paper introduces a simple methodology to assign stock recommendations based on a …

tradeoff between market and reinvestment risk explains this pattern. Intuitively, while long-term dividend claims are highly … exposed to market risk, they are also good hedges for reinvestment risk because dividend prices rise as expected returns … decline, and longer-term claims are more sensitive to discount rates. In the estimated ICAPM, reinvestment risk dominates at …

on part of risk seeking agents. More generally, with historical real sector data as inputs, this study develops a formal …