Stocks versus Bonds: Explaining the Equity Risk Premium Clifford S. Asness From the 19th century through the mid-20th century‚ the dividend yield (dividends/price) and earnings yield (earnings/price) on stocks generally exceeded the yield on long-term U.S. government bonds‚ usually by a substantial margin. Since the mid-20th century‚ however‚ the situation has radically changed. In addressing this situation‚ I argue that the difference between stock yields and bond yields is driven by the long-run
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ABSTRACT This study tries to determine whether the Indian stock market is efficient by examining if the stock returns follow a random walk. Following previous studies‚ we use autocorrelation‚ the Box-Ljung test statistics and the run test and find that the Indian stock market was not efficient in the weak form during the testing period. The results suggest that the stock prices in India do not reflect all the information in the past stock prices and abnormal returns can be achieved by investors exploiting
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Kebangsaan Malaysia GROUP PRESENTATION CLASS: Corporate Finance LECTURER: Prof. Dr Fauzias Mat Nor DIVIDEND POLICY AND STOCK REPURCHASES TEAM MEMBERS: NO. NAME I.C. NO. STUDENT NO. 1. Mohd Hatta Ahmad 641225-05-5601 ZP00664 2. Azizul Azrin Mahmor 761117-04-5189 ZP00580 3. Hazri Zan Abu Kassim ZP00398 4. Fazriman Fazli Othman ZP00665 Date: 10.10.11 INTRODUCTION Dividends and stock repurchases are firm’s payout policy where a firm pay cash to shareholders Dividend Policy Dividend policy is a decision
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How the Stock Market Works Why Do Companies Issue Stock? Companies throughout the world issue new stock shares every day. But what is stock‚ and why does a company issue it? To help you to better understand these important concepts in this tutorial we will discuss: What is Capital? Equity vs. Debt Why Do Corporations Issue Stock? Advantages for Stock Holders Let us begin by defining the word capital. What Is Capital? Let’s imagine that you decide to start up your own ice cream shop business
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Research Paper On “Stock Market in Bangladesh” (An overall research about Stock market includes the reasons of falling down & the recommendations) Submitted To: Farhana Zareen Bashar Lecturer Department of English East West University Submitted By: Atique Shahariar I.D. - 2012-2-10-053 Date of Submission: April 12‚ 2013 East West University Table of Content… Introduction: Stock market is an important part of the economy of a country. The stock market plays a
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Penny Stocks vs. Options: The similarities and the differences By SEC‚ the meaning of penny stocks is given as the following. The expression "penny stocks" for the most part alludes to a security issued by a little organization that exchanges at under $5 per offer. Penny stocks‚ for the most part‚ are cited over-the-counter‚ for example‚ on the OTC Bulletin Board (which is an office of FINRA) or OTC Link LLC (which is possessed by OTC Markets Group‚ Inc.‚ earlier known as Pink OTC Markets Inc.);
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I. Executive Summary The purpose of this report is to evaluate the stock price of Wal-Mart Stores Inc. (which ticker symbol in NYSE is WMT) by fundamental analysis. According to this analysis‚ I recommend that Wal-Mart is worth to invest in the long term because of the potential growth of market shares and revenue. Besides‚ based on P/E method and Gordon model‚ WMT price is undervalued; therefore‚ if investors buy the stock‚ they will get benefit not only in capital gain but also in dividend cash
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Investor Sentiment in the Stock Market The Investor Sentiment in the Stock Market is a very interesting article. The following are my findings. From the article‚ I know that real investors and markets are too complicated to be stated by a few biases. The top down approach to behavioral finance focuses on the measurement of reduced form‚ aggregate sentiment and traces its effects to stock returns. In particular‚ stocks of low capitalization‚ younger‚ unprofitable‚ high volatility‚ non-dividend
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Stock market: Barometer of indian economy Many assume that the stock market represents the state of the economy. That is the primary reason for this distorted obsession about the market. There are several factually incorrect assumptions about the role of the market‚ says R. Vaidyanathan. | IT is that time of the year when many suggestions are offered to the Finance Minister to modify the Budget to boost the stock market and‚ through that‚ the economy. This year the market is already in an upswing
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1. What issues did Martha Stewart‚ Bacanovic‚ and Faneuil miss in making their decisions about selling the ImClone stock in their conduct following the sales? Apply the models and make a list of suggested questions they could have asked that might have affected their decisions. I do not feel any of them were thinking about any consequences! Why was this small amount of money so important to them‚ especially Ms. Stewart‚ who was a multi- billionaire at the time? It is clear that they weren’t
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