Charles J Corrado Fundamentals of Investments - Chapter 18 ppsx

... deviations Product of deviations Security Market Security Market Security Market 1995 12 6 3 2 9 4 6 1996 -9 -1 2 -1 8 -1 6 324 256 288 1997 -6 0 -1 5 -4 225 16 60 1998 30 -4 21 -8 441 64 -1 68 1999 18 30 9 ... (.17 - .1r f )/.9 = .188 89 - .1111r f r f = [1.35( .188 89 - .1111r f ) - .23]/.35 1.42857r f = .07143 r f = .05 r m = (.17 -...

Ngày tải lên: 04/07/2014, 10:20

... 0.20 70 .14 10 .02 1.00 E(R N ) = -2 % E(R J ) = 26% The risk premium for Jmart is 26% - 10% = 16% in this case. The risk premium for Netcap is negative: -2 % - 10% = -1 2%. This is a little unusual, ... what is the projected risk premium on Jmart? On Netcap? Since the expected return on Jmart, E(R J ), is 20 percent, the projected risk premium is Risk premium = Expected...

Ngày tải lên: 04/07/2014, 10:20

... edition Fundamentals of Investments Valuation & Management Charles J. Corrado Bradford D.Jordan McGraw Hill / Irwin Slides by Yee-Tien (Ted) Fu © 2002 by The McGraw-Hill Companies, Inc. ... McGraw-Hill Companies, Inc. All rights reserved. McGraw Hill / Irwin 18 - 34 Where Do Betas Come From? © 2002 by The McGraw-Hill Companies, Inc. All rights reserved. McGraw Hill...

Ngày tải lên: 04/07/2014, 10:20

... Market second edition Fundamentals of Investments Valuation & Management Charles J. Corrado Bradford D.Jordan McGraw Hill / Irwin Slides by Yee-Tien (Ted) Fu © 2002 by The McGraw-Hill Companies, ... Irwin 5 - 36 Chapter Review  Stock Market Information Î The Dow Jones Industrial Average Î Stock Market Indexes Î More on Price-Weighted Indexes Î The Dow Jones Divisors ©...

Ngày tải lên: 04/07/2014, 10:20

... follows: Michele, Inc. Janicek Co. (12 - 6) 2 = 36 (5 - 11) 2 = 36 (-4 - 6) 2 = 100 (-1 5 - 11) 2 = 676 (0 - 6) 2 = 36 (10 - 11) 2 = 1 (20 - 6) 2 = 196 (38 - 11) 2 = 729 (2 - 6) 2 = 16 (17 - 11) 2 ... (.326– .184 ) 2 + (–.05– .184 ) 2 + (.217– .184 ) 2 + (.226– .184 ) 2 + (.062– .184 ) 2 + (.319– .184 ) 2 + ( .187 – .184 ) 2 } = 0....

Ngày tải lên: 08/05/2014, 09:53

... follows: Michele, Inc. Janicek Co. (12 - 6) 2 = 36 (5 - 11) 2 = 36 (-4 - 6) 2 = 100 (-1 5 - 11) 2 = 676 (0 - 6) 2 = 36 (10 - 11) 2 = 1 (20 - 6) 2 = 196 (38 - 11) 2 = 729 (2 - 6) 2 = 16 (17 - 11) 2 ... large-cap stocks T-bonds (13.70 - 12.11) 2 = 2.53 (6.50 - 4.20) 2 = 5.29 (35.78 - 12.11) 2 = 560.27 (4.52 - 4.20) 2 = ....

Ngày tải lên: 04/07/2014, 10:20

... the Nasdaq-AMEX (www.nasdaq- amex.com) to review the names and ticker symbols of some listed companies. 22 Chapter 2 Example 2.5 The Long and Short of It Suppose you short 2,000 shares of GTE at ... What is your effective annual rate of return? 42 Chapter 2 Chapter 2 Buying and Selling Securities End of Chapter Questions and Problems Review Problems and Self-Test 1. The Acco...

Ngày tải lên: 04/07/2014, 10:20

... agree to buy T-bonds with a total par value $100,000 in December at a price of 13 1-1 5 per $100 of par value, where the -1 5" represents 15/32. Thus 13 1-1 5 can also be written as 13 1-1 5/32, which ... a price of 13 1-1 5/32 per $100 par value. The price has risen to 13 6-1 5/32, so you make a profit of $5 per $100 of par value, or $5,000 per $100,000 face value....

Ngày tải lên: 04/07/2014, 10:20

... percentage of the offering price, we can compute the offering price as follows: Net asset value = (1 - Front-end load) × Offering price In other words, the NAV is 97 percent of the offering price. ... front-end or back-end loads and no or minimal 12b-1 fees are often called “pure” no-load funds to distinguish them from the “not-so-pure” funds that may have no loads but still charge he...

Ngày tải lên: 04/07/2014, 10:20

... indexes. The Dow Jones Industrial Average The most widely followed barometer of day-to-day stock market activity is the Dow Jones Industrial Average (DJIA), often called the “Dow” for short. The DJIA is ... equally by dollar changes in low- and high-priced stocks c. the DJIA is affected equally by percentage changes in low- and high-priced stocks d. the DJIA divisor must be adjusted for sto...

Ngày tải lên: 04/07/2014, 10:20