Miralles-Marcelo, José Luis; Miralles-Quirós, María … - In: International Review of Economics & Finance 21 (2012) 1, pp. 261-271
Idiosyncratic risk has been the subject of a great deal of international financial research. However, one question remains unsolved thus far: how to introduce it in asset pricing models. The aim of this paper is two-fold. Firstly, we propose and compare two alternative implications of...