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16 Cards in this Set
- Front
- Back
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GENERIC RETURN |
(SELLING price - PURCHASE price)/PURCHASE price
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DIVIDEND YIELD |
Dividend per share/SELLING price |
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CAPITAL GAIN RETURN |
(SELLING price - PURCHASE price)/PURCHASE price |
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HOLDING PERIOD RETURN |
(SELLING price - PURCHASE price + Dividend per share)/PURCHASE price |
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Expected Return on a Portfolio E(rtn) |
(r1 x %1) + (r2 x %2) + (r3 x %3)
r = Holding period run
% = % of portfolio |
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% of Portfolio |
Market Value/Total Market Value
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Market Value |
PURCHASE price x # of Shares |
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Total Market Value |
Sum of Market Value |
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1 "o" |
68% |
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2 "o" |
95% |
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3 "o" |
99.7% |
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Expected Range of Returns |
Upside: E(rtn) + (3 x "o")
Downside: E(rtn) - (3 x "o") |
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"B" < 1 |
stock carries less risk than the overall |
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"B" = 1 |
stock has the same risk as the overall market |
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"B" > 1 |
stock is the riskier than the overall market |
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CAPITAL ASSET PRICING MODEL (Cap M) |
E(rtn) = (rRISKFREE) + Beta x (rMARKET - rRISKFREE) |
