Includes bibliographical references (p. [226]-240) and indexes.

Machine generated contents note: 1. Introduction -- 2. Myopic Portfo lio Choice -- 2.1. Short-Term Portfolio Choice -- 2.2. Myopic Long-Term Portfolio Choice -- 2.3. Conclusion -- 3. Who Should Buy Long-Term Bon ds? -- 3.1. Long-Term Portfolio Choice in a Model -- with Constant Vari ances and Risk Premia -- 3.2. A Model of the Term Structure of Interest Rates -- 3.3. Conclusion: Bonds, James, Bonds -- 4. Is the Stock Marke t Safer for Long-Term Investors? -- 4.1. Long-Term Portfolio Choice in a VAR Model -- 4.2. Stock and Bond Market Risk in -- Historical US Data -- 4.3. Conclusion -- 5. Strategic Asset Allocation in Continuous Time -- 5.1. The Dynamic Programming Approach -- 5.2. The Martingale Approa ch -- 5.3. Recursive Utility in Continuous Time -- 5.4. Should Long-Ter m Investors Hedge Volatility Risk? -- 5.5. Parameter Uncertainty and Po rtfolio Choice -- 5.6. Conclusion -- 6. Human Wealth and Financial Weal th -- 6.1. Single-Period Models with Labor Income -- 6.2. Labor Income, Precautionary Savings, and -- Long-Horizon Portfolio Choice -- 6.3. Co nclusion -- 7. Investing over the Life Cycle -- 7.1. What Do We Know ab out Household -- Asset Allocation? -- 7.2. A Life-Cycle Model of Portfo lio Choice -- 7.3. Conclusion.