Federal ID: 91-6001537
ISSN: 0022-1090 (Print) | 1756-6916 (Online)
Inferring Aggregate Market Expectations from the Cross Section of Stock Prices
Turan G. Bali, D. Craig Nichols, and David Weinbaum ♦ We introduce a new approach to estimating long-term aggregate discount rates using the cross section of earnings and book values to explain current stock prices and extract expected market returns. The proposed…