Consumption Betas vs Market Betas
Stocks
(and other risky assets)
Wealth = market
portfolio
Market risk
makes wealthuncertain.
Stocks
(and other risky assets)
Consumption
Wealth
Wealth is uncertain
Consumption is uncertain
Standard
CAPM
Consumption Betas vs Market Betas
Stocks
(and other risky assets)
Wealth = market
portfolio
Market risk
makes wealthuncertain.
Stocks
(and other risky assets)
Consumption
Wealth
Wealth is uncertain
Consumption is uncertain
Standard
CAPM