Rate Of Return Essay

What methods have been used by researchers to examine the rate of return from investing in the visual art market? Sub- Questions What are the limitations of the Repeat-Sales Model (RSM) and the Hedonic Pricing Model (HPM)? What could be done further for future research? Abstract One of the most important aspects of the art market is the uniqueness of the art works. Lately it has been recognized that the most popular methods of creating art price indexes and examining the art market, rely on biased

FACTOR AND RATE RETURNBETA FACTOR AND RATE RETURN33 BETA FACTOR AND RATE RETURN Running Head: BETA FACTOR AND RATE RETURN Introduction Beta (β) of a stock is a number which describes how volatile an asset is. It normally compares the volatility of two said benchmarks. Any asset can be said to have a zero beta if its returns change irrespective of what happens to the market's returns. A positive beta on the other hand means that the returns are in agreement with the market's returns; this is because

utilized is when one is attempting to make decisions concerning investment over individual projects. Internal Rate of Return IRR is considered to be an important method for capital budgeting proposals. The Internal Rate of Return is the rate, where present value of cash inflows and outflows comes out to be equal or the rate at which NPV from the project comes equal to zero. At this rate, there are no benefits or losses for the Organization. If the Organization earns an IRR on the investment, the

MPT for financial assets (such as stocks), are outlined below. First, after selecting various assets and determining their monthly prices, the assets’ return is calculated. Asset return is the monthly percentage increase of the asset. Next, the expected return of the portfolio is needed. It is calculated as the weighted average of expected returns of the individual assets within the portfolio. Thereafter it is necessary to define and distinguish between correlation and covariance. Correlation is

anomalies which proves some deficiencies within the mentioned hypothesis Calendar effect or sometimes called seasonality effect is one of the core contradicting phenomena to the market efficiency hypothesis, it is defined as anomalies in stock rate of returns that is related to the calendar. Also it is described as an economic effect that appears to be related to the calendar or a specific time period. Anomalies can be described as pragmatic results that are varied from the agreed asset pricing behavior

of the Australian Security Exchange (ASX) listed company, Woolworths Ltd (WOW). Historical data is utilised with the Retention Growth Model to estimate the expected perpetual semi-annual growth rate of the company’s dividends. The Capital Asset Pricing Model is used to estimate the required rate of return for this company and the current expected share price is calculated using the Constant Dividend Growth Model. All data can be found in the appendices. The results of the analysis show that the

on the rate of return they are looking for, the risks they are willing to take, and the amount of time they are willing to invest their money. The research on the demand for money, there are three articles that become valuable resources. Jerry L

as well as have a return on investment. Barriers for this type of capital investment would include limited assets, return on investment

3636 w2= 35,000/55,000= .6364 portfolio bet= .3636*.7 + .6364*1.3 = 1.082 Required rate of return AA industries = risk free rate + market risk premium*beta AA industries ri = rRF + (rM - rRF)b 4% + (12%-4%)*.8 = 10.4% required return= risk free rate+ market risk premium*beta ri = rRF + RPM* b Market- required return= 5%+7%= 12% Beta of 1- required return= 5%+ 7%*1= 12% Beta of 1.7- required return= 5%+ 7%*1.7 = 16.9% = P1r1+P2r2+P3r3+ etc. = (0.1)(-50%) + (0.2)(-5%) + (0.4)(16%)

Question Explanation | | | Fundamental question about value creation. | Question 2 (5) the return of equity is equal to the return on debt of a project/firm Your Answer | Score | Explanation | Never true | 5.00 | Correct. Equity is always riskier. | Total | 5.00/5.00 | | Question Explanation | | | Financing`s effects on equity. | Question 3 (10 points) Suppose the expected returns on equity of two firms, Macrosoft and Microsoft, that