Empirical Evidence for the New Definitions in Financial Markets and Equity Premium Puzzle
Fuente:
arXiv
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| Autore principale: | |
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| Natura: | Preprint |
| Pubblicazione: |
2023
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| _version_ | 1866913068148064256 |
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| author | Aras, Atilla |
| author_facet | Aras, Atilla |
| contents | This study presents empirical evidence to support the validity of new definitions in financial markets. The author develops a new method to determine investors' risk attitudes in financial markets. The risk attitudes of investors in US financial markets from 1889-1978 are analyzed and the results indicate that equity investors who invested in the composite S&P 500 index were risk-averse in 1977. Conversely, risk-free asset investors who invested in US Treasury bills were found to exhibit not enough risk-loving behavior, which can be considered a type of risk-averse behavior. These findings suggest that the new definitions in financial markets accurately reflect the behavior of investors and should be considered in investment strategies. |
| format | Preprint |
| id |
arxiv_https___arxiv_org_abs_2305_03468 |
| institution | arXiv |
| publishDate | 2023 |
| record_format | arxiv |
| spellingShingle | Empirical Evidence for the New Definitions in Financial Markets and Equity Premium Puzzle Aras, Atilla General Finance General Economics Economics This study presents empirical evidence to support the validity of new definitions in financial markets. The author develops a new method to determine investors' risk attitudes in financial markets. The risk attitudes of investors in US financial markets from 1889-1978 are analyzed and the results indicate that equity investors who invested in the composite S&P 500 index were risk-averse in 1977. Conversely, risk-free asset investors who invested in US Treasury bills were found to exhibit not enough risk-loving behavior, which can be considered a type of risk-averse behavior. These findings suggest that the new definitions in financial markets accurately reflect the behavior of investors and should be considered in investment strategies. |
| title | Empirical Evidence for the New Definitions in Financial Markets and Equity Premium Puzzle |
| topic | General Finance General Economics Economics |
| url | https://arxiv.org/abs/2305.03468 |