Examlex
Match each term with the correct statement below.
-A part of UML
Dividend-Discount Model
A method for determining the value of a stock by using predicted dividends and discounting them back to present value.
Mehra and Prescott
Two economists known for their work in the economics field, particularly for the Equity Premium Puzzle which questions why stocks have historically outperformed safer assets by such a wide margin.
Average Excess Returns
The average return on an investment above the benchmark or risk-free rate.
Rational Security Pricing
The concept that the market prices of securities reflect all available information and are valued accordingly in an efficient way.
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