  This paper highlights the hidden dependence of the basic pricing equation of
a multi-period consumption-based asset pricing model on price and payoff
autocorrelations. We obtain the approximations of the basic pricing equation
that describe the mean price "to-day," mean payoff "next-day," price and payoff
volatilities, and price and payoff autocorrelations. The deep conjunction of
the consumption-based model with other versions of asset pricing, such as
ICAPM, APM, etc. (Cochrane, 2001), emphasizes that our results are valid for
other pricing models.
