Market Hypothesis sense. The paper tries to show that this so-called excess volatility is to a large extend the result of the …, constant dividend growth rates as well as non-variable discount rates. It is shown that indeed volatility declines considerably … cashflow ; excess volatility ; variance bound test ; rational expectations …

It is generally believed that excessive stock market volatility reflects non-mathematical market expectations that are …

We study the effects of the investment horizon on asset price volatility using a Learning to Forecast experiment. We … investment horizons such bubbles do not emerge and price volatility tends to be lower. This is due to the fact that, for longer … relatively stable before participants start their prediction task, price volatility remains small, with prices close to their …

Volatility is an important component of asset pricing; an increase in volatility on markets can trigger changes in the … risk distribution of financial assets. In conventional financial theory, investors are considered to be rational and any … hypothesized that there are movements in risk that are driven by volatility linked to sentiment-driven noise trader activity whose …