• 1 Introduction
  • 2 Related Literature
  • 3 The Model
  • 4 Equilibrium Behavior
  • 4.1 Optimal Investment
  • 4.2 Tobin q and Firm Migration
  • 4.3 The cross section of stock returns
  • 4.4 Tobin´s q and Conditional Volatility
  • 4.5 Stock Returns and Capital Asset Pricing Models
  • 4.6 Quasi-Fixed Investment Costs
  • 4.7 Calibration
  • 5 Conclusion
  • 6 References
  • 7 Appendix
  • 7.1 Homogeneity property
  • 7.2 The Risk-free rate
  • 7.3 Optimality of the investment policy