投资学课件 0324319568_43084电子课件.pptVIP

Mayo/Basic Investments - Ch 04 * * Chapter 4 Investment Returns Measures of Stock Performance Averages and Indices Different means to calculate an average Price-weighted Value-weighted Equal-weighted Geometric A Price-weighted Average Price of stock A $10 Price of stock B $20 Price-weighted average is ($10 + 20)/$2 = $15 A Value-weighted Average Weights the prices by the number of shares outstanding A Value-weighted Average If number of shares outstanding of stocks A and B are A 1,000,000 B 10,000,000 Total Value of Each Stock A $10,000,000 B $200,000,000 Weighted Average Price $210,000,000/(1,000,000 +10,000,000) = $19.09 An Equal-weighted Average Equal dollar amount invested in each stock If prices are $10 and $20 buy two shares of A for every share of B $20 invested in each stock Average price of a share: $40/3 = $13.33 A Geometric Average Instead of dividing, take the 1/n root (the reciprocal of n) Average price of a share: (10)(20).5 = $14.14 Averages and Indices Compare prices over time or use one year as a base In an index subsequent prices are expressed relative to the base year Aggregate Measures of the Stock Market Include: Dow Jones industrial average Standard Poors 500 stock index NYSE composite index Value Line Stock average NASDAQ composite index Wilshire 5000 index Price Movements and Graphs How stock prices appear to have changed is affected by the presentation Impact of absolute and relative scales Price Movements and Graphs Additional Aggregate Measures of the Stock Market Russell 1000 Russell 2000 Russell 3000 SP 400 MidCap SP 600 SmallCap SP 1500 NASDAQ Index Wilshire 5000 Index Aggregate Measures of the Stock Market Tend to move together Highly correlated Specialized indexes The Holding Period Return (HPR) The percentage earned on an investment during a period of time HPR = P1 + D - P0 P0 The Holding Period Return Major weakness : Does not consider the length of time One year and ten years are treated the same Rate