---
title: Risk Premiums and Equilibrium
url: https://www.ml-quant.com/papers/ssrn/5076505/
site: ML-Quant (https://www.ml-quant.com)
updated: 2026-09-26
license: Summaries CC BY 4.0; links go to the original sources
index: https://www.ml-quant.com/llms.txt
identifier: SSRN 5076505
source_url: https://papers.ssrn.com/sol3/papers.cfm?abstract_id=5076505
featured: 2025-01-01
citations: unknown
topic: Asset Pricing & Factors
---


# Risk Premiums and Equilibrium

The study confirms that risk premiums are directly influenced by risk, with risk prices backed by separate risk and risk premium structures.

- Source: https://papers.ssrn.com/sol3/papers.cfm?abstract_id=5076505
- Identifier: SSRN 5076505
- Released: 2024-12-30
- First featured: Quant Letter No. 80 (2025-01-01): https://www.ml-quant.com/issues/2025-01-01/
- Citations (Semantic Scholar): not tracked
- Published in: not yet
- Topic: Asset Pricing & Factors

## Related

- [Unveiling True Talent: The Soccer Factor Model for Skill Evaluation](https://www.ml-quant.com/papers/arxiv/2412.05911/): The Soccer Factor Model (SFM) is a new method for evaluating soccer players' performance independently from their team's influence, allowing for more accurate comparisons.
- [Design choices, machine learning, and the cross-section of stock returns](https://www.ml-quant.com/papers/ssrn/5031755/): The performance of machine learning models in predicting stock returns is greatly influenced by their design choices, with nonstandard errors in portfolio returns surpassing standard errors by 59%.
- [The relationship between general equilibrium models with infinitely-lived agents and overlapping generations models, and some applications](https://www.ml-quant.com/papers/arxiv/2411.07674/): The paper establishes that a two-cycle equilibrium in a model with infinitely-lived agents can also exist in an overlapping generations (OLG) model, indicating that both models can experience equilibrium indeterminacy and rational asset price bubbles.
- [The Cross-Section of Corporate Bond Returns](https://www.ml-quant.com/papers/ssrn/5130312/): A study of U.S. corporate bonds identifies four factors that provide strong return premiums after costs.
- [Dynamic Factor Correlation Model](https://www.ml-quant.com/papers/arxiv/2503.01080/): A new model with a unique variation-free parameterization of factor loadings shows adaptability and scalability in both small and large asset return environments.
- [How Election Shocks Impact Markets: Evidence from Sectoral Stock Prices](https://www.ml-quant.com/papers/arxiv/2504.02731/): Research indicates U.S. presidential election cycles impact sectoral stock markets, with candidate preferences influencing asset prices in energy, defense, and clean energy sectors.
