Required Yield Theory of Asset Valuation
May 21, 2009 - Fundamental Valuation
What aggregate return thresholds are critical to investors in deciding whether to accept or reject equity and bonds for investment portfolios? In their December 2008 paper entitled “A Required Yield Theory of Stock Market Valuation and Treasury Yield Determination”, Christophe Faugere and Julian Van Erlach argue that investors first require that U.S. stocks and bonds… Keep Reading