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What is the intuition behind their main results

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Question - Bansal and Yaran (2004) claim to have found an alternative solution of the equity premium puzzle.

a) What is the intuition behind their main results and the new ideas of their model?

b) How do they model the primitives of their model, such as utility or the stochastic discount factor, relative to the standard model?

Reference no: EM133182734

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