You can not build a model with any predictive power using risk premiums
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Replying to @OffRoad_AM
.@OffRoad_AM @hussmanjp: Some recent papers disagree, find variance risk premia predictive of future returns, eg goo.gl/SQ9ne5

Mar 21, 2014 · 1:48 AM UTC

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Replying to @eddelbuettel
@eddelbuettel @hussmanjp Risk premiums as defined by the earnings yield - gov. or corporate bond yields. You are spot on for other RPs
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