Equity Premium Puzzle Hypothesis

This cursory paper presents a proposed solution to an economic conundrum known as the equity risk premium puzzle first presented by Mehra and Prescott (1985). It is shown that the disparity between expected returns for stocks and bonds may be unexpectedly high due to the notion that investors accept a large premium over Treasuries due to the tendency for a small fraction (less than one h More

Available ebook formats: epub mobi pdf lrf pdb txt html

First 20% Sample: epub mobi (Kindle) lrf more Online Reader
About Chris Waltzek

Chris Gilbert Waltzek PhD

Economist and Executive Producer of Goldseek.com Radio and the Alpha Stocks Newsletter, Chris Waltzek is a polymath who wears many hats. Currently on the Actuarial Sciences path, as of January 2015, he is a doctoral candidate at NorthCentral University and is enrolled in Actuarial Sciences 4300 at Clemson University. In 2014, he expanded and honed his Calculus skill set via a twice weekly interstate commute to the Clemson University campus (Top 20 US University), earning a perfect score on 12 calculus quizzes (click here) in purportedly the most failed course on campus (additional calculus work: ex. 1, ex. 2). Chris is currently a Ph.D. candidate, having completed the required comprehensive examinations in 2014-15, accepted invitations to join the business honor societies at Northcentral University (Delta Mu Delta (ΔμΔ) via the Lambda Eta (λη) chapter, a 101 year old business honor society, originating at Harvard / Yale) and the Golden Key Honor Society, a group with many prestigious members, including former US Presidents Ronald Reagan & Bill Clinton as well as General Colin Powell. The 175 page dissertation proposal is complete - expected graduation date: 2015. The Ph.D. degree in Management / Finance & Economics, will be issued by an ACBSP accredited school: NorthCentral University. He joined the Society of Actuaries (SOA) - Exam P is scheduled for March 2015 in pursuit of ASA designation. He is a member of the Royal Economic Society, one of the oldest economics institutions, with several Nobel Laureate members, and the American Economic Association, American Association of University Professors (2010), and the American Finance Association; the society hosts the Fischer-Black prize, the authors of the Black-Schoals options model. He earned his bachelor's degree in Business Economics and holds a dual MBA in Business Economics & Information Systems. He worked as the firm-wide Industry Analyst at one of the nations largest law firms, Jones, Day, Reavis, Pogue. For 9+ years, Chris, his better half and son have made the Western North Carolina mountains their home. While preparing for the Actuarial Exam P in 2015, Chris improved a calculus formula that simplifies traditional integration by parts, a tedious and time consuming calculus process, reducing errors by half and speeding calculation by up to 200-300%. In Figure 1.1., the C.W. formula for simplified Integration by Parts is presented as an improved shortcut for actuarial students to facilitate passing Exam P; note that the antiderivative of g(x) need only be calculated once. Although it is loosely based on an existing user-unfriendly calculus method, to the best of our knowledge, this is the first time that this precise expression appears in the actuarial sciences (Chris Waltzek, ©2015). FREE FORMULA PEN / MUG TO NEW ALPHA STOCK SUBSCRIBERS:

Figure 1.1. CW Formula: Simplified Integration by Parts

Learn more about Chris Waltzek
Report this book