Asset Pricing: PhD Lecture

This lecture covers the asset pricing model in PhD classes, focusing on equations and solutions for a and b coefficients, risk-free assets, continuation utility, stochastic discount factor, portfolio choice, and mean-preserving spreads. The instructor discusses the preference for early resolution of uncertainty, the second-order stochastic dominance, and the Euler equation for the EZ agent. The lecture also explores the impact of early resolution on asset pricing puzzles and the magnitude of preference for early resolution. Various examples and theorems are presented to illustrate concepts.