Capital gains and 'net national product' in open economies
... terms-of-trade) will not be constant. 4 The economy may therefore be able to sustain a positive stationary level of consumption, a n d - if NNP is to serve as an indictor of sustainability- may have a positive NNP. Hence, capital gains cannot be excluded when the closed world economy is split into t ...
... terms-of-trade) will not be constant. 4 The economy may therefore be able to sustain a positive stationary level of consumption, a n d - if NNP is to serve as an indictor of sustainability- may have a positive NNP. Hence, capital gains cannot be excluded when the closed world economy is split into t ...
Outerwall (OUTR)
... presentation thereof and should in no event be viewed as predictions or representations as to actual future performance. Investment may involve a high degree of risk and should be considered only by investors who do not require access to their capital and can withstand the loss of all or part of the ...
... presentation thereof and should in no event be viewed as predictions or representations as to actual future performance. Investment may involve a high degree of risk and should be considered only by investors who do not require access to their capital and can withstand the loss of all or part of the ...
CHAPTER 5 Risk and Rates of Return
... Compare the historical relationship between risk and rates of return in the capital markets Explain how diversifying investments affect the riskiness and expected rate of return of a portfolio or combination of assets Explain the relationship between an investor’s required rate of return and the ris ...
... Compare the historical relationship between risk and rates of return in the capital markets Explain how diversifying investments affect the riskiness and expected rate of return of a portfolio or combination of assets Explain the relationship between an investor’s required rate of return and the ris ...
Risk and Rates of Return
... … the relevant riskiness of an individual stock is its contribution to the riskiness of a well-diversified portfolio, since all investors can be well-diversified if they wish; the “market” offers no compensation for undertaking diversifiable risk … the risk that remains after diversifying is market ...
... … the relevant riskiness of an individual stock is its contribution to the riskiness of a well-diversified portfolio, since all investors can be well-diversified if they wish; the “market” offers no compensation for undertaking diversifiable risk … the risk that remains after diversifying is market ...
Foreign debt and capital accumulátion
... apparent, .and future generations may have different perceptions on the benefits and the opportunity costs of borrowing. In this ...
... apparent, .and future generations may have different perceptions on the benefits and the opportunity costs of borrowing. In this ...
What explains developments in business investment?
... A growing body of literature shows that investment decisions are also influenced by factors other than the expected profitability of new investment, contrary to the well-known ModiglianiMiller theorem. Asymmetrical information between borrower and lender gives rise to agency costs, which raise the p ...
... A growing body of literature shows that investment decisions are also influenced by factors other than the expected profitability of new investment, contrary to the well-known ModiglianiMiller theorem. Asymmetrical information between borrower and lender gives rise to agency costs, which raise the p ...
What Stock Market Returns to Expect for the Future
... repurchases), the ratio of stock value to GDP would rise more than 20-fold over 75 years. Such an increase does not seem plausible to most observers. Consideration of possible steady states supports the same basic conclusion. The “Gordon formula” says that stock returns equal the ratio of adjusted d ...
... repurchases), the ratio of stock value to GDP would rise more than 20-fold over 75 years. Such an increase does not seem plausible to most observers. Consideration of possible steady states supports the same basic conclusion. The “Gordon formula” says that stock returns equal the ratio of adjusted d ...
Role of Private Investment in Economic development of Pakistan
... This study is expected to contribute to an important aspect of the economy of Pakistan known as Private investment and its determinants during the financial period from 1986-87 to 2007-08, and the factors which determine it. The study will analyze those different determinants including interest rate ...
... This study is expected to contribute to an important aspect of the economy of Pakistan known as Private investment and its determinants during the financial period from 1986-87 to 2007-08, and the factors which determine it. The study will analyze those different determinants including interest rate ...
what stock market returns to expect for the future?
... repurchases), the ratio of stock value to GDP would rise more than 20-fold over 75 years. Such an increase does not seem plausible to most observers. Consideration of possible steady states supports the same basic conclusion. The “Gordon formula” says that stock returns equal the ratio of adjusted d ...
... repurchases), the ratio of stock value to GDP would rise more than 20-fold over 75 years. Such an increase does not seem plausible to most observers. Consideration of possible steady states supports the same basic conclusion. The “Gordon formula” says that stock returns equal the ratio of adjusted d ...
Multiple Choice Questions
... C) uncorrelated with inflation rates but correlated with other macroeconomic variables D) uncorrelated with any macroeconomic variables including inflation rates E) none of the above Answer: B Difficulty: Easy Rationale: P/E ratios have tended to be lower when inflation has been high, reflecting the ...
... C) uncorrelated with inflation rates but correlated with other macroeconomic variables D) uncorrelated with any macroeconomic variables including inflation rates E) none of the above Answer: B Difficulty: Easy Rationale: P/E ratios have tended to be lower when inflation has been high, reflecting the ...
Public Pension Funds and Assumed Rates of Return
... Center on the States, 2010) indicates that as of June 30, 2008, the aggregate reported value of unfunded liabilities reported in state government external financial reports amounted to less than US$1 trillion (Pew Center on the States, 2010), suggesting that the actual value of unfunded pension liab ...
... Center on the States, 2010) indicates that as of June 30, 2008, the aggregate reported value of unfunded liabilities reported in state government external financial reports amounted to less than US$1 trillion (Pew Center on the States, 2010), suggesting that the actual value of unfunded pension liab ...
Cash Flow Mismanagement May Deteriorate SME’s Financial Status
... stakeholders. Forecasting is always a challenge. The key to monitoring and managing these cash flows is to ensure that there is always a reasonable buffer between what flows in and what must flow out. It is the uncertainty of events that engenders that challenge, and is often the deterrent in even a ...
... stakeholders. Forecasting is always a challenge. The key to monitoring and managing these cash flows is to ensure that there is always a reasonable buffer between what flows in and what must flow out. It is the uncertainty of events that engenders that challenge, and is often the deterrent in even a ...
Intertemporal capital budgeting
... needs increase the capital allocated to current projects as capital conservation concerns are diminished. In such circumstances, the capital allocation mechanism serves not only the purpose of allocating capital efficiently but may also be designed to elicit information about the probability of new p ...
... needs increase the capital allocated to current projects as capital conservation concerns are diminished. In such circumstances, the capital allocation mechanism serves not only the purpose of allocating capital efficiently but may also be designed to elicit information about the probability of new p ...
CHAPTER THIRTEEN
... forecasting future residual earnings, as directed by the residual earnings model. If assets and liabilities are already valued correctly in the balance sheet, the forecast of residual earnings must be zero. Accordingly there is no need to forecast: There is no work to do. While operating assets and ...
... forecasting future residual earnings, as directed by the residual earnings model. If assets and liabilities are already valued correctly in the balance sheet, the forecast of residual earnings must be zero. Accordingly there is no need to forecast: There is no work to do. While operating assets and ...
Country spreads and emerging countries: Who drives whom?
... financial conditions are revealed. The latter feature is consistent with the central assumption supporting the identification of our empirical model. We assign numerical values to the parameters of the model so as to fit a number of empirical regularities in developing countries. We then show that t ...
... financial conditions are revealed. The latter feature is consistent with the central assumption supporting the identification of our empirical model. We assign numerical values to the parameters of the model so as to fit a number of empirical regularities in developing countries. We then show that t ...
NBER WORKING PAPER SERIES COMPETING LIQUIDITIES: CORPORATE SECURITIES, REAL BONDS AND BUBBLES
... benefit more from a bubble, and benefit more from (or are less hurt by) an increase in the amount of rents. Existence of bubbles. Because they are demanded as stores of value, bubbles are more likely to exist when inside and outside liquidity are scarce. Equivalently they are more likely to exist wh ...
... benefit more from a bubble, and benefit more from (or are less hurt by) an increase in the amount of rents. Existence of bubbles. Because they are demanded as stores of value, bubbles are more likely to exist when inside and outside liquidity are scarce. Equivalently they are more likely to exist wh ...
An Empirical Study of Taiwan Bond Market Based on Nonlinear
... with different durations to their maturities. In accordance with term structure of interest rate, the theoretical price of a bond can be judged at any place and time to avoid the risk in investment portfolio and evaluate investment performance. In addition, the term structure of interest rate reflec ...
... with different durations to their maturities. In accordance with term structure of interest rate, the theoretical price of a bond can be judged at any place and time to avoid the risk in investment portfolio and evaluate investment performance. In addition, the term structure of interest rate reflec ...
an econometric analysis of effect of changes in interest rates on
... monetary authorities, gives us the Hicksian LM curve, which tell us what the various rates of interest will be (given the quantity of money and the family of liquidity preference curves) at different levels of income. On the other hand, the neoclassical formulation provides us family saving-schedule ...
... monetary authorities, gives us the Hicksian LM curve, which tell us what the various rates of interest will be (given the quantity of money and the family of liquidity preference curves) at different levels of income. On the other hand, the neoclassical formulation provides us family saving-schedule ...