generates stock volatility that is higher than long-horizon dividend volatility, even with constant market prices of risk …Many leading asset pricing models predict that the term structures of expected returns and volatilities on dividend … these models replace their exogenously specified dividend dynamics with processes that are derived endogenously from capital …

Many leading asset pricing models are specified so that the term structure of dividend volatility is either flat or … is greater than long-horizon dividend volatility … upward sloping. Related, these models predict that the term structures of expected returns and volatilities on dividend …

generates stock volatility that is higher than long-horizon dividend volatility, even with constant market prices of risk …Many leading asset pricing models predict that the term structures of expected returns and volatilities on dividend … these models replace their exogenously specified dividend dynamics with processes that are derived endogenously from capital …

of risk, the interest rate, the stock market volatility, the equity premium and the moments of the consumption growth …. The ability to explain the dividend strips puzzle, the term structure of interest rates and the predictive behavior of the …