Cochrane (1991, 1996) created a production CAPM (PCAPM). How is the PCAPM different from the consumption CAPM

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Cochrane (1991, 1996) created a production CAPM (PCAPM). How is the PCAPM different from the consumption CAPM (CCAPM)? He tested it using a single factor model. Write the equation for this model and discuss his results.

What did he conclude?

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Investment Valuation And Asset Pricing Models And Methods

ISBN: 9783031167836

1st Edition

Authors: James W. Kolari, Seppo Pynnönen

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Question Posted: Mar 03, 2024 02:00 AM

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Cochrane (1991, 1996) created a production CAPM (PCAPM). How is the PCAPM different from the consumption CAPM

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Answer The Production CAPM PCAPM proposed by Cochrane in 1991 and further developed in 1996 is a mod...View the full answer

Investment Valuation And Asset Pricing Models And Methods

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