From 91aa53d6a673c8918c4575929cbfd72c4f061023 Mon Sep 17 00:00:00 2001 From: "Eric J. Wang" Date: Tue, 18 Feb 2025 01:00:17 -0800 Subject: [PATCH] Update 2024-05-22-premia.md --- _posts/2024-05-22-premia.md | 2 +- 1 file changed, 1 insertion(+), 1 deletion(-) diff --git a/_posts/2024-05-22-premia.md b/_posts/2024-05-22-premia.md index a25e414..152126e 100644 --- a/_posts/2024-05-22-premia.md +++ b/_posts/2024-05-22-premia.md @@ -7,7 +7,7 @@ usemathjax: true ![](/assets/images/asset_pricing.jpg) -One of my favorite books is Cochrane's _Asset Pricing_. Chapter 1 of Cochrane outlines the consumption-based capital asset pricing model (CCAPM), which is a shockingly elegant account of asset prices in terms of individual consumption preferences. +One of my favorite books is Cochrane's _Asset Pricing_. Chapter 1 of Cochrane outlines the consumption-based capital asset pricing model (CCAPM), which is a pleasingly elegant account of asset prices in terms of individual consumption preferences. When an investor purchases an asset, they are exchanging certain consumption in the present for a variable amount of consumption in the future. These quantities are related in the utility function