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Capital market equilibrium without riskless assets: heterogeneous expectations
Journal article

Capital market equilibrium without riskless assets: heterogeneous expectations

D. Won, G. Hahn and N. Yannelis
Annals of finance, Vol.4(2), pp.183-195
03/01/2008
DOI: 10.1007/s10436-007-0074-2

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Abstract

The existence theorem of Allingham (Econometrica 59:1169-1174, 1991) for the capital asset pricing model (CAPM) is generalized to the case where agents have heterogeneous expectations on the return distribution and the mean-variance utility functions are quasiconcave. This result is built upon new conditions which are distinct from and weaker than the conditions imposed on the CAPM in the literature.
Business & Economics Business, Finance Social Sciences

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