? Can stock return predictability be explained by changes in stock market volatility? How does the mean return per unit risk … change over time? This chapter reviews what is known about the time-series evolution of the risk-return tradeoff for stock … predictor of both the mean and volatility of excess stock market returns. We characterize the risk-return tradeoff as the …

between risk and uncertainty is implemented by applying the Gilboa-Schmeidler maxmin with multiple priors framework to lenders …, ultimate lenders and financial intermediaries. The model is used to investigate the impact of uncertainty about the likelihood … include: (i) An unanticipated increase in bailout uncertainty raises interest rates, the volume of defaults in both the real …

finance models will lead to over-estimation of the risk of simultaneous extreme events. We provide simple techniques for …

-step estimators such as continuously updated GMM yield numerically identical values for prices of risk, pricing errors, Jensen …

contained in the volatility risk premium and option-implied skewness increases substantially Sharpe ratios and certainty …

uncertainty. Despite this high aggregate performance, individual investors do not reap the rewards from liquidity provision …

, and who may reclaim some pension surplus. Our model includes an allowance for uncertainty both of the future value of … assets (because of uncertain investment returns) and liabilities (because of uncertainty in future longevity and in future …