Author : Rajnish Mehra
Publisher : Elsevier
Page : 635 pages
File Size : 27,76 MB
Release : 2011-08-11
Category : Business & Economics
ISBN : 0080555853
Edited by Rajnish Mehra, this volume focuses on the equity risk premium puzzle, a term coined by Mehra and Prescott in 1985 which encompasses a number of empirical regularities in the prices of capital assets that are at odds with the predictions of standard economic theory.
Author : William N. Goetzmann
Publisher : Oxford University Press
Page : 568 pages
File Size : 46,90 MB
Release : 2006-11-16
Category : Business & Economics
ISBN : 0199881979
What is the return to investing in the stock market? Can we predict future stock market returns? How have equities performed over the last two centuries? The authors in this volume are among the leading researchers in the study of these questions. This book draws upon their research on the stock market over the past two dozen years. It contains their major research articles on the equity risk premium and new contributions on measuring, forecasting, and timing stock market returns, together with new interpretive essays that explore critical issues and new research on the topic of stock market investing. This book is aimed at all readers interested in understanding the empirical basis for the equity risk premium. Through the analysis and interpretation of two scholars whose research contributions have been key factors in the modern debate over stock market perfomance, this volume engages the reader in many of the key issues of importance to investors. How large is the premium? Is history a reliable guide to predict future equity returns? Does the equity and cash flows of the market? Are global equity markets different from those in the United States? Do emerging markets offer higher or lower equity risk premia? The authors use the historical performance of the world's stock markets to address these issues.
Author : Stephen D. Hassett
Publisher : John Wiley & Sons
Page : 210 pages
File Size : 42,6 MB
Release : 2011-08-31
Category : Business & Economics
ISBN : 1118118618
A radical, definitive explanation of the link between loss aversion theory, the equity risk premium and stock price, and how to profit from it The Risk Premium Factor presents and proves a radical new theory that explains the stock market, offering a quantitative explanation for all the booms, busts, bubbles, and multiple expansions and contractions of the market we have experienced over the past half-century. Written by Stephen D. Hassett, a corporate development executive, author and specialist in value management, mergers and acquisitions, new venture strategy, development, and execution for high technology, SaaS, web, and mobile businesses, the book convincingly demonstrates that the equity risk premium is proportional to long-term Treasury yields, establishing a connection to loss aversion theory. Explains stock prices from 1960 through the present including the 2008/09 "market meltdown" Shows how the S&P 500 has consistently reverted to values predicted by the model Solves the equity premium puzzle by showing that it is consistent with findings on loss aversion Demonstrates that three factors drive valuation and stock price: earnings, long term growth, and interest rates Understanding the stock market is simple. By grasping the simplicity, business leaders, corporate decision makers, private equity, venture capital, professional, and individual investors will fully understand the system under which they operate, and find themselves empowered to make better decisions managing their businesses and investment portfolios.
Author : Laurence B. Siegel
Publisher : CFA Institute Research Foundation
Page : 69 pages
File Size : 27,38 MB
Release : 2017-12-08
Category : Business & Economics
ISBN : 1944960325
Research into the equity risk premium, often considered the most important number in finance, falls into three broad groupings. First, researchers have measured the margin by which equity total returns have exceeded fixed-income or cash returns over long historical periods and have projected this measure of the equity risk premium into the future. Second, the dividend discount model—or a variant of it, such as an earnings discount model—is used to estimate the future return on an equity index, and the fixed-income or cash yield is then subtracted to arrive at an equity risk premium expectation or forecast. Third, academics have used macroeconomic techniques to estimate what premium investors might rationally require for taking the risk of equities. Current thinking emphasizes the second, or dividend discount, approach and projects an equity risk premium centered on 3½% to 4%.
Author : Shannon P. Pratt
Publisher : John Wiley & Sons
Page : 448 pages
File Size : 35,75 MB
Release : 2008-02-25
Category : Business & Economics
ISBN : 9780470223710
In this long-awaited Third Edition of Cost of Capital: Applications and Examples, renowned valuation experts and authors Shannon Pratt and Roger Grabowski address the most controversial issues and problems in estimating the cost of capital. This authoritative book makes a timely and significant contribution to the business valuation body of knowledge and is an essential part of the expert's library.
Author : Roger G. Ibbotson
Publisher :
Page : 202 pages
File Size : 33,38 MB
Release : 1989
Category : Actions (Titres de société) - Prix - Prévision
ISBN : 9781556232312
Author : Richard M. Levich
Publisher : Springer Science & Business Media
Page : 380 pages
File Size : 16,54 MB
Release : 2012-12-06
Category : Business & Economics
ISBN : 1461509998
Ratings, Rating Agencies and the Global Financial System brings together the research of economists at New York University and the University of Maryland, along with those from the private sector, government bodies, and other universities. The first section of the volume focuses on the historical origins of the credit rating business and its present day industrial organization structure. The second section presents several empirical studies crafted largely around individual firm-level or bank-level data. These studies examine (a) the relationship between ratings and the default and recovery experience of corporate borrowers, (b) the comparability of credit ratings made by domestic and foreign rating agencies, and (c) the usefulness of financial market indicators for rating banks, among other topics. In the third section, the record of sovereign credit ratings in predicting financial crises and the reaction of financial markets to changes in credit ratings is examined. The final section of the volume emphasizes policy issues now facing regulators and credit rating agencies.
Author : Pim van Vliet
Publisher : John Wiley & Sons
Page : 180 pages
File Size : 35,77 MB
Release : 2017-01-17
Category : Business & Economics
ISBN : 1119351057
Believing "high-risk equals high-reward" is holding your portfolio hostage High Returns from Low Risk proves that low-volatility, low-risk portfolios beat high-volatility portfolios hands down, and shows you how to take advantage of this paradox to dramatically improve your returns. Investors traditionally view low-risk stocks as safe but unprofitable, but this old canard is based on a flawed premise; it fails to see beyond the monthly horizon, and ignores compounding returns. This book updates the thinking and brings reality to modelling to show how low-risk stocks actually outperform high-risk stocks by an order of magnitude. Easy to read and easy to implement, the plan presented here will help you construct a portfolio that delivers higher returns per unit of risk, and explains how to achieve excellent investment results over the long term. Do you still believe that investors are rewarded for bearing risk, and that the higher the risk, the greater the reward? That old axiom is holding you back, and it is time to start seeing the whole picture. This book shows you, through deep historical simulation, how to reap the rewards of smarter investing. Learn how and why low-risk, low-volatility stocks beat the market Discover the formula that outperforms Greenblatt's Construct your own low-risk portfolio Select the right ETF or low-risk fund to manage your money Great returns and lower risk sound like a winning combination — what happens once everyone is doing it? The beauty of the low-risk strategy is that it continues to work even after the paradox is widely known; long-term investment success is possible for anyone who can shake off the entrenched wisdom and go low-risk. High Returns from Low Risk provides the proof, model and strategy to reign in your exposure while raking in the profit.
Author : Nano Kurzmann
Publisher : GRIN Verlag
Page : 89 pages
File Size : 19,11 MB
Release : 2010-12
Category : Business & Economics
ISBN : 3640781562
Master's Thesis from the year 2008 in the subject Business economics - Investment and Finance, grade: 1,3, University of Birmingham (Department of Economics), language: English, abstract: Despite the great fall of the Shanghai Stock exchange since the beginning of the year 2008, Chinese equities have performed unimaginably during their young history of existence. This paper aims to answer the question whether these returns are sustainable. The equity risk premium probably provides the most powerful tool to do so. Thus, several techniques are presented to estimate its magnitude. It turns out that some techniques are less and others more suitable in an environment of an emerging country. This paper accumulates evidence that investors must be prepared to receive a much lower reward for their investments.
Author : Aswath Damodaran
Publisher : John Wiley & Sons
Page : 663 pages
File Size : 19,38 MB
Release : 2014-10-27
Category : Business & Economics
ISBN : 1118808932
Aswath Damodaran, distinguished author, Professor of Finance, and David Margolis, Teaching Fellow at the NYU Stern School of Business, has delivered the newest edition of Applied Corporate Finance. This readable text provides the practical advice students and practitioners need rather than a sole concentration on debate theory, assumptions, or models. Like no other text of its kind, Applied Corporate Finance, 4th Edition applies corporate finance to real companies. It now contains six real-world core companies to study and follow. Business decisions are classified for students into three groups: investment, financing, and dividend decisions.
