chapter02Rates of Return(国际投资,英文版).pptVIP

Francis Ibbotson Chapter 2: Rates of Return Chapter 2 Rates of Return Background Investors want to maximize their returns (or wealth) Chapter discusses The calculation of a return Historical returns offered by different types of investments The Investor’s Goal Goal is to maximize what is earned relative to the amount put into an investment Maximize either the Rate of return The Investor’s Goal Some claim wealth-maximizing investors are performing harmful greedy activities Law abiding wealth maximization is beneficial to both investor and general population Seek out securities issued by firms producing high quality goods and services Capital is used to benefit general population Investors can request management actions at stockholder meetings Helps nation compete internationally Creates new job opportunities Ethics Box: The Need for Ethics in Investment Some level of ethics is necessary Ethics concerned with standards of right and wrong Concepts of trust and fairness are relevant to investments Investors trust investment firms to act in their best interest and to safeguard their assets Fairness means a ‘level playing field’ and the absence of fraud Decreasing information asymmetry increases efficiency and fairness An investment professional should Be loyal Act with due care Keep information confidential Avoid conflicts of interest The One-Period Rate of Return Rate of return measures change in an investor’s wealth over time Measures the success or failure of the investment Measures holding period return Defined as Examples: One Period Return You purchased one share of Coca-Cola one year ago for $54. You sold it today for $64, and you received dividends of $0.80 during the year Your income from dividends = 80￠ Your capital gain is $10 ($64 - $54) Your return is $10.80 ? $54 = 20% Examples: One Period Return You purchased a U.S. T-bond for $900. One year later you sold the bond for $910. You received $35 in interest during the year. Your rate of return is Figu