Testing the Capital Asset Pricing Model And the Fama-French Three-Factor Model By Jiaxin Ling (Cindy) March 19‚ 2013 Key words: Asset Pricing‚ Statistical Methods‚ CAPM‚ Fama-French Three-Factor Model Abstract: This paper examines the Capital Asset Pricing Model(CAPM) and the Fama-French three-factor model(FF) and the Fama-MacBeth model(FM) for the 201211 CRSP database using monthly returns from 25 portfolios for 2 periods ---July 1931 to June 2012 and July 1631 to June 2012. The theory’s
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PRICING STRATEGY Easyjet Essay Hanoi‚ January 12‚ 2011 From: Trinh Phuong Thao To: Miss Thuy and Miss Dung Hue‚ Integrated Business lecturers Subject: Easyjet Essay Table of content Introduction………………………………………………………………………………………..2 Role of pricing…………………………………………………………………………………….3 Easyjet fare fluctuation…………………………………………………………………………..5 Easyjet and British Airways pricing strategies……………………………………………………7 Conclusion……………………………………………………………………………………….10 Recommendation………………………………………………………………………………
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a new product goes through on a marketplace: development‚ introduction‚ growth‚ maturity‚ and decline. . 4 Stages of Product Life Cycle I.Introduction phase (Development Stage is Stage #0) 2 strategies are usually practiced: a. skimming pricing – strategy to cover the costs of development quickly; (3M: “We hit fast‚ price high‚ and get the heck out when “me-too” products pour in”) b. penetration strategy – low prices to discourage competitive entry. II.Growth Stage (Characterized by
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Pricing Strategy Today’s Agenda • Announcements • Chapters 9 & 11 May 6‚ 2015 Refresher • Branding • New product development (NPD) – NPD process • Product life cycle (PLC) – Product development‚ introduction‚ growth‚ maturity‚ decline – Dealing with declining products – Extending the PLC Review Questions A few review questions from chapters 8 & 9 Annie is planning to buy a new washing machine. She notices that they come in numerous price ranges. She wants to make sure she gets the most
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3.2 explain the calculation of unit costs and make pricing decisions using relevant information Pricing is depend on the unit costs‚ consumer capability and the breakeven analysis‚ To perform the breakeven analysis and to calculate the unit cost ‚we should consider about the two relevant costs. Those are fixed costs and variable costs. Fixed costs – Costs that will not change with in a period of time . ex- Machineries‚ Insurance. These are the essential costs that should be considered at the
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1. The Malaysian Domestic Airline Industry In Peninsular Malaysia‚ the main cities are served by an efficient network of highways and major roads. In most cities and big towns‚ the road network is relatively good‚ with the exception being the less-developed rural and interior areas. Here‚ possibly the only way to get around would be by river transportation. A good and reliable train service runs the length of the Peninsula and covers the West and East Coast. The rail network also links up with Singapore
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Executive summary The Computron‚ Inc. is facing problems regarding pricing the bid for Computron 1000X‚ future functioning of Frankfurt plant‚ impact on production due to current market breakdown. The main concern about Computron is that if the bid of 1000X should not higher than 20% of least bid to get the contract. It is strongly recommended to get the bid for functioning of new plant. Various issues regarding cutting down prices‚ bidding high or low and its pros-cons‚ current market situation
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Driving value through pricing: Strategies adopted by Managers in price Sensitive and fierce Competitive Markets Introduction Buffett told the Financial Crisis Inquiry Commission in an interview that “If you’ve got the power to raise prices without losing business to a competitor‚ you’ve got a very good business. And if you have to have a prayer session before raising the price by 10 percent‚ then you’ve got a terrible business”. Yet pricing has been neglected area in many hospitality organizations
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D1r - g = D1 / Pr = (D1 / P) + gTherefore in order to estimate the cost of equity through the Dividend Growth Model‚ we simply add the constant growth rate and the projected dividend yield in one year. 2. Capital Asset Pricing ModelThe assumptions used in the Capital Asset Pricing Model (CAPM) are similar in that they assume an almost "perfect world" scenario. Initially‚ CAPM assumes
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total product mix where pricing is difficult because the various products have related demand and costs and face different degrees of competition. There are five different product mix pricing strategies that can be used for a firm. These are such as the product line pricing‚ optional-product pricing‚captive-product pricing‚ by-product pricing and lastly‚ product bundle pricing. (Kotler‚et al.‚2009) In this case‚ Payless’s used two different type of product mix pricing strategies to match their
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