d. * In your explanation in (c), you almost certainly thought of the investor as having a
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d. * In your explanation in (c), you almost certainly thought of the investor as having a one-year horizon. Suppose investors are in it “for the long run,” facing a 10% chance of a loss on their stocks each year. Do you think your behavioral economics explanation that relies on referencebased preferences and loss aversion can still explain the equity premium puzzle?
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Microeconomics An Intuitive Approach With Calculus
ISBN: 9781337335652,9781337027632
2nd Edition
Authors: Thomas Nechyba
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