FE Lab

Financial
Economics Lab

Interactive tools and visual explanations for understanding how financial markets price risk.

01

Asset Pricing Lab

Macro shocks, factor betas, and arbitrage portfolios. Three scenarios covering SDF pricing and no-arbitrage.

3 scenarios
02

The Equity Premium Puzzle

Why have stocks outperformed bonds by so much? The Mehra-Prescott puzzle in a concise walkthrough.

03

The Equity Premium Puzzle — Extended

Historical data, habit formation, long-run risk, rare disasters. The full treatment with charts and annotations.