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We use the model to decompose the yield curve given a yield (forward) curve today, how much is expected future interest rates, and how much is risk premium? How does the yield or forward rate premium correspond to the term structure of expected return premia? Was the conundrum a conundrum? I (of course) take a p e(mx) approach to portfolio theory before covering the classic merton-style direct approach. Atkeson and kehoe advocate a fascinating view that risk premia cause monetary policy, not vice versa. It will test the hypothesis, not all town and city centres are the same. Will stocks average 9 for the next 50 years? The equity premium, return predictability, and a review of theories and facts...

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