Empirical Evidence for the New Definitions in Financial Markets and the Equity Premium Puzzle
Abstract
This study aims to present empirical evidence supporting the validity of new definitions of risk attitudes that may find a place in financial markets. A new method, partly based on the consumption capital asset pricing model, is developed to determine risk behaviour in financial markets. Additionally, the method specifies risk behaviours for unequal wealth values that differ in some respects from those of the standard method. Moreover, the method offers a solution to the equity premium puzzle. The results suggest that the new definitions accurately specify the risk behaviours and can be used in investment strategies.
Fields of Study & Subjects
Financial Markets and Investment Strategies
Risk Management in Financial Firms
Corporate Finance and Governance
Publication details
- Journal / source
- Sosyoekonomi
- Publisher
- Sosyoekonomi
- Volume
- 34
- Issue
- 68
- Pages
- 407–423
- Publication date
- 28 April 2026
- Language
- EN