Stock market fluctuations and the term structure
The stock market refers to the collection of markets and exchanges where regular activities of buying, selling, and issuance of shares of publicly-held companies take place. Second, we derive the term structure of stock market risk via direct regressions based on the structural estimation of a forward-looking specification consistent with the DDG model. Interestingly, the slope of the term structure of stock market risk is a topic heavily debated in the recent literature. Fluctuations in “the market” in a more general sense are simply the sum of all those individual stock decisions, but there are things that dictate the direction of the market in general. To