Frequency dependent risk

نویسندگان

چکیده

We provide a model-free framework for studying the dynamics of state vector and its risk prices. Specifically, we derive frequency domain decomposition unconditional asset return premium in general setting with log-affine stochastic discount factor (SDF). Importantly, show that cospectrum between returns SDF only displays dependencies through prices can be inferred from covariances (portfolio) returns, is, cross-section. Empirically, find low high-frequency to differentially priced US equities.

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ژورنال

عنوان ژورنال: Journal of Financial Economics

سال: 2021

ISSN: ['1879-2774', '0304-405X']

DOI: https://doi.org/10.1016/j.jfineco.2021.01.007