This paper investigates the implications for asset price dispersion of conventional security valuation models. Successively sharper variance bounds on asset prices are derived. Large-sample tests of the bounds are determined and applied to aggregated and disaggregated price and earnings data in U.S. corporations.
MLA
Porter, Richard D., and Stephen F. LeRoy. “The Present-Value Relation: Tests Based on Implied Variance Bounds.” Econometrica, vol. 49, .no 3, Econometric Society, 1981, pp. 555-574, https://www.jstor.org/stable/1911512
Chicago
Porter, Richard D., and Stephen F. LeRoy. “The Present-Value Relation: Tests Based on Implied Variance Bounds.” Econometrica, 49, .no 3, (Econometric Society: 1981), 555-574. https://www.jstor.org/stable/1911512
APA
Porter, R. D., & LeRoy, S. F. (1981). The Present-Value Relation: Tests Based on Implied Variance Bounds. Econometrica, 49(3), 555-574. https://www.jstor.org/stable/1911512
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