Title: Risk, return and dividends
Description: "We characterize the joint dynamics of dividends, expected returns, stochastic volatility, and prices.  In particular, with a given dividend process, one of the processes of the expected return, the stock volatility, or the price-dividend ratio fully determines the other two.  For example, together with dividends, the stock volatility process fully determines the dynamics of the expected return and the price-dividend ratio.  By parameterizing one or more of expected returns, volatility, or prices, common empirical specifications place strong, and sometimes counter-factual, restrictions on the dynamics of the other variables.  Our relations are useful for understanding the risk-return trade-off, as well as characterizing the predictability of stock returns"--National Bureau of Economic Research web site.