江南大学《公司金融学》课件-第10-11章An Overview.pptxVIP

9-0CHAPTER10Capital Market Theory: An Overview江南大学《公司金融学》 Chapter Outline10.1 Returns10.2 Holding-Period Returns10.3 Return Statistics10.4 Average Stock Returns and Risk-Free Returns10.5 Risk Statistics10.6 Summary and Conclusions 9-210.1 ReturnsDollar Returnsthe sum of the cash received and the change in value of the asset, in dollars.Time01Initial investmentEnding market valueDividendsPercentage Returnsthe sum of the cash received and the change in value of the asset divided by the original investment. Dollar Return = Dividend + Change in Market Value10.1 Returnsyield gains capitalyield dividend+=uemarket val beginninguemarket valin change dividend+=uemarket val beginningreturndollar return percentage= 9-410.1 Returns: ExampleSuppose you bought 100 shares of Wal-Mart (WMT) one year ago today at $25. Over the last year, you received $20 in dividends (= 20 cents per share × 100 shares). At the end of the year, the stock sells for $30. How did you do?Quite well. You invested $25 × 100 = $2,500. At the end of the year, you have stock worth $3,000 and cash dividends of $20. Your dollar gain was $520 = $20 + ($3,000 – $2,500).Your percentage gain for the year is20.8% = $2,500$520 9-510.1 Returns: ExampleDollar Return:$520 gainTime01-$2,500$3,000$20Percentage Return:20.8% = $2,500$520 9-610.2 Holding-Period ReturnsThe holding period return is the return that an investor would get when holding an investment over a period of n years, when the return during year i is given as ri: 9-7Holding Period Return: ExampleSuppose your investment provides the following returns over a four-year period: 9-8So, our investor made 10.58% on his money for four years, realizing a holding period return of 44.21%Holding Period Return: ExampleAn investor who held this investment would have actually realized an annual return of 10.58%: 9-9Holding Period Return: ExampleNote that the geometric average is not the same thing as the arithmetic average: 9-10Holding Period ReturnsA famous set of stu