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Main Author: Olkhov, Victor
Format: Preprint
Published: 2022
Subjects:
Online Access:https://arxiv.org/abs/2204.07506
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author Olkhov, Victor
author_facet Olkhov, Victor
contents This paper highlights the hidden dependence of the basic pricing equation of a multi-period consumption-based asset pricing model on price and payoff autocorrelations. We obtain the approximations of the basic pricing equation that describe the mean price "to-day," mean payoff "next-day," price and payoff volatilities, and price and payoff autocorrelations. The deep conjunction of the consumption-based model with other versions of asset pricing, such as ICAPM, APM, etc. (Cochrane, 2001), emphasizes that our results are valid for other pricing models.
format Preprint
id arxiv_https___arxiv_org_abs_2204_07506
institution arXiv
publishDate 2022
record_format arxiv
spellingShingle Price and Payoff Autocorrelations in a Multi-Period Consumption-Based Asset Pricing Model
Olkhov, Victor
General Economics
Economics
Pricing of Securities
This paper highlights the hidden dependence of the basic pricing equation of a multi-period consumption-based asset pricing model on price and payoff autocorrelations. We obtain the approximations of the basic pricing equation that describe the mean price "to-day," mean payoff "next-day," price and payoff volatilities, and price and payoff autocorrelations. The deep conjunction of the consumption-based model with other versions of asset pricing, such as ICAPM, APM, etc. (Cochrane, 2001), emphasizes that our results are valid for other pricing models.
title Price and Payoff Autocorrelations in a Multi-Period Consumption-Based Asset Pricing Model
topic General Economics
Economics
Pricing of Securities
url https://arxiv.org/abs/2204.07506