Paun, Cristian; Brasoveanu, Iulian; Musetescu, Radu - In: Journal for Economic Forecasting 4 (2007) 4, pp. 77-87
Stock prices move as corporate earnings prospects change, but they also move as investors change their aversion to risk. One of the central tenets of finance is that investors expect higher return for taking risk. They exchange some of their riskless securities for risky assets because they...
