TAILIEUCHUNG - Essentials of Investments: Chapter 5 - Risk and Return Past and Prologue

Essentials of Investments: Chapter 5 - Risk and Return Past and Prologue includes Rates of Return, Returns Using Arithmetic and Geometric Averaging, Dollar Weighted Returns, Dollar Weighted Average Using Text, Quoting Conventions. | 1 Bodie • Kane • Marcus Essentials of Investments Fourth Edition Chapter 5 Risk and Return: Past and Prologue Irwin / McGraw-Hill © 2001 The McGraw-Hill Companies, Inc. All rights reserved. 2 Bodie • Kane • Marcus Essentials of Investments Fourth Edition Rates of Return: Single Period P P D HPR P 1 0 1 0 HPR = Holding Period Return P1 = Ending price P0 = Beginning price D1 = Dividend during period one Irwin / McGraw-Hill © 2001 The McGraw-Hill Companies, Inc. All rights reserved. 3 Bodie • Kane • Marcus Essentials of Investments Fourth Edition Rates of Return: Single Period Example Ending Price = Beginning Price = Dividend = 24 20 1 HPR = ( 24 - 20 + 1 )/ ( 20) = 25% Irwin / McGraw-Hill © 2001 The McGraw-Hill Companies, Inc. All rights reserved. 4 Bodie • Kane • Marcus Essentials of Investments Fourth Edition Data from Text Example p. 154 1 .10 Assets(Beg.) HPR TA (Before Net Flows Net Flows End Assets Irwin / McGraw-Hill 2 .25 3 (.20) 4 .8 .25 () .8 © 2001 The McGraw-Hill Companies, Inc. All rights reserved. 5 Bodie • Kane • Marcus Essentials of Investments Fourth Edition Returns Using Arithmetic and Geometric Averaging Arithmetic ra = (r1 + r2 + r3 + . rn) / n ra = (.10 + .25 - .20 + .25) / 4 = .10 or 10% Geometric rg = {[(1+r1) (1+r2) (1+rn)]} 1/n - 1 rg = {[() () (.8) ()]} 1/4 - 1 = () 1/4 -1 = .0829 = Irwin / McGraw-Hill © 2001 The McGraw-Hill Companies, Inc. All rights .

• Kinh tế học
• Essentials of Investments
• Rates of Return
• Returns Using Arithmetic
• Geometric Averaging
• Dollar Weighted Returns
• Dollar Weighted Average Using Text
• Ebook Essentials of investments
• Investment companies
• Debt securities
• Portfolio theory
• Securities markets
• Capital asset pricing
• Derivative markets
• Active investment management
• Equity valuation
• Financial statement analysis
• Financial Assets
• The Investment Process
• Major Classes of Financial Assets
• Key Trends
• Global Markets
• Industry analysis
• Options markets
• Option valuation
• Futures markets
• Asset classes
• Financial instruments
• Other investment companies
• Behavioral finance
• Technical analysis
• Mutual funds
• International investing
• Performance evaluation
• Financial Markets
• Money Market Instrument Yields
• Bank Discount Rate
• Bond Equivalent Yield
• Securities market
• Secondary Security Sales
• Investment Banking Arrangements
• Public Offerings
• Private Placements
• Net Asset Value
• Types of Investment Companies
• Efficient Diversification
• Correlation Coefficients
• Three Security Portfolio
• Minimum Variance Combination
• Extending Concepts to All Securities
• Arbitrage Pricing Theory
• Resulting Equilibrium Conditions
• Capital Market Line
• Market Risk Premium
• The Efficient Market Hypothesis
• Versions of the EMH
• Types of Stock Analysis
• Resource Allocation
• How Tests Are Structured
• Behavioral Critiqu
• Share Price
• Moving Averages
• Bond Prices
• Bond Characteristics
• Corporate Bonds
• Preferred Stock
• Innovation in the Bond Market
• Bond Pricing Relationships
• Rules for Duration
• Callable Bonds
• Mortgage Backed Securities
• Passive Managemen
• Fundamental Analysis
• The Global Econom
• The Domestic Macroeconom
• The Domestic Macroeconomy
• Models of Equity Valuation
• Valuation by Comparables
• Limitations of Book Value
• Financial Statements
• Profitability Measures
• Financial Leverage
• Option Terminology
• Exercise Price Relationships
• European Options
• Different Types of Options
• Factors influencing option values
• BlacScholes option valuation
• Using the BlacScholes formula
• Binomial Option Pricing
• Risk Management
• Basics of Futures Contracts
• Existing Contracts
• Trading Mechanics