ln(BE/ME) × 1 year

0.0855

0.1750

0.49

ln(EDF)*HG

0.0692

0.0239

2.9

ln(EDF)*LG

0.0015

0.0095

0.15

ln(EDF)*stock return

0.0139

0.0046

3.06

ln(EDF)*lag stock return

−0.0069

0.0024

−2.88

ln(EDF)*rf

−0.0588

0.1959

−0.3

ln(EDF)*VW CRSP

−0.0174

0.0056

−3.13

ln(EDF) × 10 year

0.0102

0.0182

0.56

ln(EDF) × 1 year

−0.0984

0.0835

−1.18

Average of Firm Specific Models

ln(ME)

−0.0076

0.1534

−1.65

ln(BE/ME)

−0.0036

0.1280

−0.94

ln(EDF)

−0.0021

0.0387

−1.82

Stock Return

0.0559

0.1199

15.6

Lag Stock Return

0.0083

0.0631

4.38

Risk Free Rate

0.1648

22.2947

0.25

High Grade Corporate Bond Return

0.0961

2.6584

1.21

Low Grade Corporate Bond Return

0.0950

0.6277

5.06

Value -Weighted CRSP Stock Return

0.0062

0.3019

0.68

10 Year CRSP Government Bond Return

0.1386

1.5933

2.91

1 Year CRSP Government Bond Return

−0.0100

6.2605

−0.05