Đang chuẩn bị nút TẢI XUỐNG, xin hãy chờ
Tải xuống
This lecture introduces you to some lessons from capital market history. After completing this unit, you should be able to: Know how to calculate the return on an investment, understand the historical returns on various types of investments, understand the historical risks on various types of investments. | 10- Copyright © 2011 by the McGraw-Hill Companies, Inc. All rights reserved. McGraw-Hill/Irwin 10- Key Concepts and Skills Understand: How to calculate the return on an investment The historical returns on various types of investments The historical risks on various types of investments The implications of market efficiency 10- Chapter Outline 10.1 Returns 10.2 The Historical Record 10.3 Average Returns: The First Lesson 10.4 The Variability of Returns: The Second Lesson 10.5 More on Average Returns 10.6 Capital Market Efficiency 10- Risk–Return Tradeoff Two key lessons from capital market history: There is a reward for bearing risk The greater the potential reward, the greater the risk 10- Dollar & Percent Returns Total dollar return = the return on an investment measured in dollars $ Return = Dividends + Capital Gains Capital Gains = Price received – Price paid Total percent return = the return on an investment measured as a percentage of the original | 10- Copyright © 2011 by the McGraw-Hill Companies, Inc. All rights reserved. McGraw-Hill/Irwin 10- Key Concepts and Skills Understand: How to calculate the return on an investment The historical returns on various types of investments The historical risks on various types of investments The implications of market efficiency 10- Chapter Outline 10.1 Returns 10.2 The Historical Record 10.3 Average Returns: The First Lesson 10.4 The Variability of Returns: The Second Lesson 10.5 More on Average Returns 10.6 Capital Market Efficiency 10- Risk–Return Tradeoff Two key lessons from capital market history: There is a reward for bearing risk The greater the potential reward, the greater the risk 10- Dollar & Percent Returns Total dollar return = the return on an investment measured in dollars $ Return = Dividends + Capital Gains Capital Gains = Price received – Price paid Total percent return = the return on an investment measured as a percentage of the original investment. % Return = $ Return/$ Invested 10- Percent Return Dividend Yield Capital Gains Yield 10- Example: Calculating Total Dollar and Total Percent Returns You invest in a stock with a share price of $25. After one year, the stock price per share is $35 Each share paid a $2 dividend What was your total return? Dollars Percent Dividend $2.00 $2/25 = 8% Capital Gain $35 - $25 = $10 $10/25= 40 % Total Return $2 + $10 = $12 $12/$25 = 48% 10- Figure 10.4 U.S. Financial Markets The Historical Record: 1925-2008 10- Year-to-Year Total Returns Large-Company Stock Returns 10- Year-to-Year Total Returns Long-Term Government Bond Returns 10- Year-to-Year Total Returns U.S. Treasury Bill Returns 10- Average Returns: The First Lesson 1926 - 2008 Investment Average Return Large Stocks 11.7% Small Stocks 16.4% Long-term Corporate Bonds 6.2% Long-term Government Bonds 6.1% U.S. Treasury Bills 3.8% Inflation 3.1% Table 10.2 10- .
