Essays Tagged: "asset pricing"

Homework 2 How good is the Exponential Function Discounting Formula? An Experimental Study.

and often referred to as hyperbolic time discounting.In a recent survey of investor psychology and asset pricing, experimental studies of inter-temporal choice derive subjective discount rates by app ...

(1 pages) 1133 0 4.3 May/2005

Subjects: Social Science Essays > Economics

FIN 402 Modern Portfolio Theories.

rtfoliochoice; William Sharpe, for his contributions to the theory of price formation for financial assets, the so-called, Capital Asset Pricing Model (CAPM); and Merton Miller, for his fundamental co ... o the total variability of the portfolio. Sharpe was responsible for the development of the capital asset pricing model. The Sharpe Ratio Equation (2005) is as follows:After adding all of the securiti ...

(5 pages) 295 0 2.5 Oct/2005

Subjects: Businesss Research Papers > Markets & Exchanges

Application of the C.A.P.M. on NYSE & NASDAQ Stocks: Toyota in NYSE

one must know what the C.A.P.M. is. This is a formula which is actually an abbreviation of Capital Asset Pricing Model and is used in order to find the appropriate price of an asset. If we analyze th ...

(2 pages) 118 0 5.0 Apr/2006

Subjects: Social Science Essays > Economics > Rates & Indexes

Nike Inc.: Cost of Capital

orrectly. Also, we calculate the company's cost of equity using three different models: the Capital Asset Pricing Model (CAPM), the Dividend Discount Model (DDM) and the Earnings Capitalization Model ... he cost of equity (Ke), which we will examine later. In our calculations of WACC we use the Capital Asset Pricing Model (CAPM), as it is considered to be the most complete model for estimating the cos ...

(9 pages) 960 1 4.6 Oct/2006

Subjects: Businesss Research Papers > Case Studies > Clothing, Footwear and Cosmetics

GWA International Limited

vice Coverage ratio �73.9 Earnings per share �84 Technical analysis �94.1 Cash Asset Pricing Model (CAPM) �94.2 The formula �104.3 Weighted Average Cost of Capital & ... practical share market prices has been considered while the financial analysis of the company. Cash Asset Pricing Model and Weighted Average Cost of Capital has been considered for being Technical ana ...

(14 pages) 84 0 4.3 Apr/2007

Subjects: Businesss Research Papers > Case Studies

Marriott Corporation: The Cost of Capital

s were taken to calculate the WACC of each of the divisions and for Marriott:1) We used the Capital Asset Pricing Model ("CAPM") to calculate the cost of equity.2) The cost of debt was determined by a ... e unlevered beta of this division. Since by definition the unlevered beta is defined as the beta of assets, we believe it is appropriate to use the percentage of total identifiable assets of each divi ...

(5 pages) 246 0 2.0 Apr/2008

Subjects: Businesss Research Papers > Case Studies

RPL-MRPL-Assessing Risk and Return

ng Risk and ReturnSubmitted By- Sumer Lal MeenaExe-PGP 2007-09�Background ReadingThe Capital Asset Pricing Model (CAPM)Some, but not all, of the risk associated with a risky investment can be e ... liminated by diversification. The reason is that unsystematic risks, which are unique to individual assets, tend to wash out in a large portfolio, but systematic risks, which affect all of the assets ...

(11 pages) 351 1 3.0 Jul/2008

Subjects: Businesss Research Papers > Case Studies

Dividend Growth Model, Capital Asset Pricing Model, Modern Portfolio Theory, Estimation of Untraded Stocks

del, we simply add the constant growth rate and the projected dividend yield in one year.2. Capital Asset Pricing ModelThe assumptions used in the Capital Asset Pricing Model (CAPM) are similar in tha ... the available information. It also makes the assumption that the dividends are paid normally, that assets are fixed, and that the market is efficient and in equilibrium with no inflation or change in ...

(5 pages) 135 0 2.6 Sep/2008

Subjects: Businesss Research Papers > Management

Relationship between CAPM, E/E raitio, and size

an influential paper "The Cross-Section of Expected Stock Returns" in 1992, challenging the Capital Asset Pricing Plan developed in 1960.Through their research and analysis, they found that the averag ... a bias. So whether the model still works with current market data is yet to be clarified.Intangible AssetsThe book equity captures the tangible assets of a company but ignores the intangible assets of ...

(3 pages) 20 0 1.0 Apr/2009

Subjects: Businesss Research Papers > Case Studies

Efficient Capital Markets History

problem is more serious. The market efficiency is not solely testable; it must test jointly with an asset-pricing model. In 1970, Fama has said that "test whether information is properly reflected in ...

(4 pages) 46 0 5.0 Apr/2009

Subjects: Businesss Research Papers > Marketing

Financial Management - Stock Market entity performance comparison

n of the Financial Performance of the company �92.3 Conclusion �93.0 Task 2 - Capital Asset Pricing Model. �93.1 The Relevance of the Capital Asset Pricing Model (CAPM) to investo ... Line (SML) plotted…………………8Table 2.1: Capital Asset Pricing model Calculation……………………&hell ...

(14 pages) 1 0 0.0 Nov/2012

Subjects: Social Science Essays > Alternative

Reaction Paper

ST OF ACRONYMS AND ABBREVIATIONS APTArbitrage Pricing TheoryAMFAnidaso Mutual FundAUMAsset Under ManagementCAPMCapital Asset Pricing ModelCGTCapital Gain TaxCISCollect ... atabank Stock IndexECOWASEconomic Community of West African StateEFAMAEuropean Fund and Asset ManagementEMHEfficient Market HypothesisEPExpected Return of PortfolioEPACKE ...

(59 pages) 14 0 0.0 Jan/2013

Subjects: Law & Government Essays > Law

Equity research Bata

nal part focuses on the forecasts about the return on Bata stock, taking into account the different asset pricing models. The CAPM is used to calculate the Beta of the stock using five years of monthl ... return on Bata stock are done at the final section of the project taking into account the different asset pricing models. So, last of all we will get a glimpse of the historical P/E Ratios of the comp ...

(45 pages) 3 0 0.0 Apr/2013

Subjects: Businesss Research Papers