aa(){return function(){}}function ba(a){return function(){return this[a]}}var q;function r(a‚b‚c){a=a.split(".");c=c||u;!(a[0]in c)&&c.execScript&&c.execScript("var "+a[0]);for(var d;a.length&&(d=a.shift());)!a.length&&ca(b)?c[d]=b:c=c[d]?c[d]:c[d]={}}fu nction da(a‚b){for(var c=a.split(".")‚d=b||u‚e;e=c.shift();)if(d[e]!=l)d=d[e];else return l;return d}function ea(a){a.i=function(){return a.tc?a.tc:a.tc=new a}} function fa(a){var b=typeof a;if("object"==b)if(a){if(a instanceof Array)return"array";if(a
Premium Statement
to examine and test the January Effect as a trading strategy. The January Effect is well documented in the literature since Rozeff and Kinney (RK) 1976. Their study showed share returns appear to be abnormally high in January in the United States. In Australia‚ Brown et al (BKKM) 1983 demonstrated that ASX share returns peak in January and July. This trend appears to persist over time and markets across the world so it could be an exploitable trading strategy‚ taking advantage of market inefficiency
Premium Stock market Stock exchange Standard deviation
1980‚ Quarterly dividend and earnings announcements and stockholders ’ returns: An empirical analysis‚ Journal of Finance 35‚ 1-12. Ariel‚ Robert A.‚ 1987‚ A monthly effect in stock returns‚ Journal of Financial Economics 18‚ 161-174. ‚ 1990‚ High stock returns before holidays: Existence and evidence on possible causes‚ Journal of Finance 45‚ 1611-1626. Asquith‚ Paul‚ 1983‚ Merger bids‚ uncertainty and stock holder returns‚ Journal of Financial Economics 11‚ 51-83. and David W. Mullins‚ 1983‚ The
Premium Fundamental analysis Stock market Financial markets
CHAPTER 8 APT 1.In a factor model‚ the return on a stock in a particular period will be related to _________. A. firm-specific events B. macroeconomic events C. the error term D. both a and b E. neither a nor b 2.Assume that stock market returns do follow a single-index structure. An investment fund analyzes 500 stocks in order to construct a mean-variance efficient portfolio constrained by 500 investments. They will need to calculate ________ estimates of firm-specific variances and ________
Premium Investment Stock Variance
Mutual Fund Performance in Bangladesh: An Analysis of Monthly Returns Md. Hashibul Hassan* Tahmina Akhter† Abstract Extensive research has evaluated mutual fund performance in different financial markets which led to mixed results (Soderlind et al.‚ 2000; Korkeamaki and Smythe‚ 2004); however‚ very limited work has been done to evaluate Bangladeshi mutual funds. This paper focused on measuring risk adjusted performance of 13 closed end mutual funds on the basis of monthly Net Asset Value. For
Premium Investment Balance sheet Generally Accepted Accounting Principles
Required Rate of Return on Equity 3 3. Beta 3 4. Capital Asset Pricing Model 4 5.1 Limitations of CAPM 4 5.2 The APT Model 4 5.3 The Three-Factor Model 4 5.4 Required Rate of Return using APT or Three-Factor 5 Model 5. Bonds 5 6.5 How bond prices are determined 5 6.6 The Rate of Return on the bonds 6 6. Conclusion 7. Appendices 6.1 Appendix 1 – after tax rate of return on bonds 7
Premium Net present value Rate of return Time value of money
investment Y because only the expected returns matters to the company not the risk that is required. b. If she were risk-averse‚ which investments would she select? Why? Sharon would choose investment X because the expected returns must increase for the company if the risk goes up c. If she were risk-seeking‚ which investments would she select? Why? Sharon would choose investment Z because to the company there is an acceptable decrease in return if the risk increases. d. Given the
Premium Net present value Investment Cash flow
income taxes. As you can see above‚ not taking depreciation will result in Company D paying $121‚600 additional in taxes. 4 PART B2 The time value of money Before we can address a decision process for Net Present Value (NPV) and Internal Rate of Return (IRR) we must first understand the time value of money. In our case we will use the time value of $1. A very simple explanation of this concept is to say
Premium Net present value Rate of return
Chapter 8 Problem 6 The following are the historic returns for the Chelle Computer Company: Year Chelle Computer General Index Year chelle computer general index 1 37 15 2 9 13 3 -11 14 4 8 -9 5 11 12 6 4 9 Based on this information‚ compute the following: a. The correlation coefficient between Chelle Computer and the General Index. Answer : r= .1305 b. The standard deviation for the company and the index
Premium Investment Mutual fund Rate of return
Section A One of the most common criticisms of DCF models is that any forecast beyond a couple of years is questionable. Investors‚ therefore‚ are alleged to be better off using more certain‚ near-term earnings forecasts. Such reasoning makes no sense‚ for at least two reasons. First‚ a key element in understanding a business’s attractiveness involves knowing the set of financial expectations the price represents. The market as a whole has historically traded at a price-to-earnings multiple in
Premium Discounted cash flow Stock market Cash flow