Stochastic Dominance, Pareto Optimality, and Equilibrium Asset Pricing
在竞争均衡资产定价中引入因子子空间概念，该子空间包含市场组合且每个市场化的或有索取权都被其二阶随机占优。文章给出均衡存在条件，并展示APT和CAPM如何在该框架下解释，若市场组合的看涨期权足够多，则这些期权张成的空间可作为因子子空间。
This paper introduces the concept of a factor subspace in competitive equilibrium asset pricing. A factor subspace contains the market portfolio and is such that every marketed contingent claim is second-order stochastically dominated by a claim from the factor subspace. Conditions are given for the existence of equilibrium, and it is shown how APT and CAPM can be interpreted in the framework of the paper. If sufficiently many call options on the market portfolio are traded, then the space spanned by these options can be used as the factor subspace.