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  • Lucas’s tree
  • Breeden’s consumption CAPM
  • The equity premium puzzle
  • Consumption-based pricing

Consumption-based pricing#

Asset prices from a representative agent’s Euler equation: Lucas’s tree, the consumption CAPM and the equity premium puzzle.

Lucas’s tree

Lucas's tree

Breeden’s consumption CAPM

Breeden's consumption CAPM

The equity premium puzzle

The equity premium puzzle
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