The effective annual interest rate is 3%. A perpetuity pays $3000 at the end of the first year and the payments are increasing 5% each year for the first 10 years. From then on, the payments remain ...
Fama-Macbeth (1973) introduce a two stage cross-sectional regression method (http://en.wikipedia.org/wiki/Fama%E2%80%93MacBeth_regression). 1) If I was to regress stock prices (or returns) on a ...