The Moon, The Skies And You, Dear

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Incomplete-Information Capital Market Equilibrium with Heterogeneous Expectations and Short Sale Restrictions

This article extends Merton's (1987) asset-pricing model under incomplete information to consider the situation when investors' beliefs are divergent and short selling is restricted. The article finds that the diversity of beliefs increases the mean variance inefficiency of the market portfolio and the shadow cost of information. However, the inefficiency of the market portfolio due to divergent beliefs is mitigated by short-sale restrictions. The article also finds that the effect of firm size is intertwined with the residual return variance risk Consistent with the findings of Levy (1978) and Carroll and Wei (1988), the residual return variance plays an important role in determining the risk and risk premium of each security. Finally, the shadow cost of information is larger and the equilibrium security return is higher when expectations are more diverse. And the effects of divergent beliefs on both information cost and required rates of returns are negatively related to the relative size of investor base for a particular security. © 1996 Kluwer Academic Publishers

The Enduring Significance of Skin Tone: Linking Skin Tone, Attitudes Toward Marriage and Cohabitation, and Sexual Behavior

Past evidence has documented that attitudes toward marriage and cohabitation are related to sexual behavior in adolescence and young adulthood. This study extends prior research by longitudinally testing these associations across racial/ethnic groups and investigating whether culturally relevant variations within racial/ethnic minority groups, such as skin tone (i.e., lightness/darkness of skin color), are linked to attitudes toward marriage and cohabitation and sex. Drawing on family and public health literatures and theories, as well as burgeoning skin tone literature, it was hypothesized that more positive attitudes toward marriage and negative attitudes toward cohabitation would be associated with less risky sex, and that links differed for lighter and darker skin individuals. The sample included 6872 respondents (49.6 % female; 70.0 % White; 15.8 % African American; 3.3 % Asian; 10.9 % Hispanic) from the National Longitudinal Study of Adolescent to Adult Health. The results revealed that marital attitudes had a significantly stronger dampening effect on risky sexual behavior of lighter skin African Americans and Asians compared with their darker skin counterparts. Skin tone also directly predicted number of partners and concurrent partners among African American males and Asian females. We discuss theoretical and practical implications of these findings for adolescence and young adulthood