01798cas a2200241 a 4500 AALejournalIMF007871 230101c9999 xx r poo 0 0eng d 5.00 USD 9781451845839 1018-5941 BD-DhAAL BD-DhAAL Johannes, Ronald. The Equilibrium Distributions of Value for Risky Stocks and Bonds / Ronald Johannes. Washington, D.C. : International Monetary Fund, 2001. 1 online resource (35 pages) IMF Working Papers <strong>Off-Campus Access:</strong> No User ID or Password Required <strong>On-Campus Access:</strong> No User ID or Password Required Electronic access restricted to authorized BRAC University faculty, staff and students Within a unified theory for stocks and corporate bonds, based on dynamic optimization by investors, this paper derives analytical expressions for the momentary distributions of expected price, respectively known to approximate lognormal with systematic deviations (high peak, fat tail) and double exponential (for credit risk). Market equilibrium is regarded as a dynamic equilibrium characterized by a time-invariant probability distribution over microfinancial states, marginal redistributions of portfolios are regarded as indistinguishable, and real and fiat assets are regarded as essentially distinct. The formalism provides a basis for decomposing value changes by market fundamentals, investor sentiment, and investor acquisition of securities. Mode of access: Internet IMF Working Papers; Working Paper ; No. 2001/039 Full text available on IMF http://elibrary.imf.org/view/journals/001/2001/039/001.2001.issue-039-en.xml IMF e-Library