Pessimism as a contributory factor in equity premium puzzle : France and Germany

• Main Authors: Lim, Joey Zu Er, Cheng, Johann Wei Yang
• Other Authors: Kang Minwook
• Format: Final Year Project
• Language: English
• Published: Nanyang Technological University 2021
• Subjects: Social sciences::Economic theory
• Online Access: https://hdl.handle.net/10356/152968
• Institution: Nanyang Technological University

Abel (2002) revealed that with pessimism, the objective expectation is greater than the expectations of the consumers, thus conferring to a possible solution to the equity premium puzzle of Mehra and Prescott (1985). In this research study, we will focus on examining two countries belonging to the E...