The difference between the implications of the two models can be important in applied work, but it is neglected here. Two key parameters that distinguish bonds from one another are (a) the date of maturity, at which the obligations on the bond terminate, and (b) the coupons (if any) paid to bondholders. Gucci Catherine Boots. However, it is not unusual for tests similar to those reported here to provide evidence against the CAPM (namely, too large an intercept and too small a slope compared with what is predicted by the model). Gucci Horsebit Boots. With futures contracts, the identity of the party who takes the other side of the contract is irrelevant. Gucci Catherine Boots. Kocherlakota (1996), for example, finds that a y of at least 8.5 is needed to satisfy the sample variant of (11.14).16 A second way of expressing the EPP is in terms of the covariance between equity returns and the rate of growth of per capita consumption. Gucci Sunset Thongs Sandals. Of course, whether or not any particular transaction in futures is part of a hedge strategy depends on the investor's other commitments or opportunities. Gucci Catherine Boots. Alternatively, a straightforward - though not very satisfactory - answer to the question is that any factor model is a simple representation of how the world works.