Asset pricing theory tries to understand the prices or values of claims to uncertain payments.
A low price implies a high rate of return, so one can also think of the theory as explaining
why some assets pay higher average returns than others.
To value an asset, we have to account for the delay and for the risk of its payments. The
effects of time are not too difficult to work out. However, corrections for risk are much
more important determinants of an many assets’ values. For example, over the last 50 years
U.S. stocks have given a real return of about 9% on average. Of...
.MOSFET MODELING FOR VLSI SIMULATION
Theory and Practice
.International Series on Advances in Solid State Electronics and Technology (ASSET)
Founding Editor: Chih-Tang Sah
Modern Semiconductor Quantum Physics by Li Ming-Fu Topics in Growth and Device Processing of III-V Semiconductors by Stephen John Pearton, Cammy R. Abernathy & Fan Ren Ionizing Radiation Effects in MOS Oxides by Timothy R. Oldham
Analyzing monthly return data on more than 2500 unique U.S. equity
funds over the period 1984–2003, we show that the average return gap is
close to zero. In particular, the equally weighted return gap for all mutual
funds in our sample equals 1.1 basis points per month, while the value-
weighted return gap equals −1.0 basis points per month. These results
indicate that the magnitude of unobserved actions is relatively small in the
aggregate. Thus, fund managers’ trades in the aggregate create sufﬁcient
value to offset trading costs and other hidden costs of fund management.
A study for the German Ministry of Economics and Technology (Fryges et al, 2007) analysed high-
tech start-ups and Business Angels. The results, presented here, are based on analysed companies
that have been founded between 2001 and 2005 (formation cohort/group 2001-2005).
According to the study, the most important source of financing for the young companies of this
formation cohort is cash-flow and owner’s equity. Among newly created high-tech companies of
the cohort 2001-2005 in Germany approx. 5% received Business Angel financing (approx 3,700
Further, the average serial correlation in sales changes for our sample firms is .17 which is also approximately consistent with a random walk. The assumption is not critical to most of our results (the major exception is that earnings is a random walk). Even if sales follow an autoregressive process in first differences, accruals still offset the negative serial
correlation in operating cash flow changes induced by inventory and working capital financing policies.
The maturity decision will reﬂect your view of the direction of short-
term interest rates over the coming weeks or months. You’ll want a longer
average maturity or duration when interest rates are falling and a shorter
one when they’re rising. A working knowledge of economics will help you
sort through the market drivers that determine the direction of interest rates.
Once you’ve made the maturity decision, determining the optimal mix
among U.S. Treasuries, agencies, commercial paper, CDs, and repos is still
in front of you.
Product innovation has recently flourished in the ETF market, , as well as in the market for
close substitutes of ETFs such as ETNs or ETVs, which are essentially debt products (while
ETFs are funds
), extending the asset class beyond its initial plain-vanilla standardised nature.
Some new products are archetypes of this trend (leveraged ETFs, inverse ETFs, and
), although as yet they represent only a tiny fraction of the market,
around 3% of total. The first ETF of speculative grade corporate loans was also recently
The workshop participants included: (a) general managers and high-level staff of social funds;
(b) representatives of central government institutions that oversee the operations of the funds;
(c) representatives of municipal governments that interact with social funds in the selection and
implementation of subprojects and of their regional associations; (d) representatives of nongov-
ernmental organizations (NGOs) and civil society organizations that work with social funds;
(e) staff of the World Bank and of other multilateral and bilateral development agencies that
finance, design, a...
The results provide evidence of significant causal community effects.We find
that a 10-percentage point increase in the average ownership in one’s commu-
nity leads to a four-percentage point increase in the likelihood that an indi-
vidual will own stocks.
Both ﬁnancial market participants and policymakers, such as central banks,
closely follow ﬁnancial market developments. However, the motivation for their
interest in the ﬁnancial markets diﬀers in the sense that investors monitor asset
price movements to optimize the risk-return proﬁle on their investments, whereas
central banks use ﬁnancial market prices to infer information about market ex-
pectations of economic growth and inﬂation.
Tools that help us determine the financial health of a company.
We can compare a company’s financial ratios with its ratios in previous years (trend analysis).
We can compare a company’s financial ratios with those of its industry. Do we have enough liquid assets to meet approaching obligations ?If the average current ratio for the
industry is 2.4, is this good or not?
The money market is traditionally defined as the market for financial
assets that have original maturities of one year or less. In essence, it is
the market for short-term debt instruments. Financial assets traded in
this market include such instruments as U.S. Treasury bills, commercial
paper, some medium-term notes, bankers acceptances, federal agency
discount paper, most certificates of deposit, repurchase agreements,
floating-rate agreements, and federal funds.
In the CRSP data set, different classes of the same fund appear as different funds. We
identify the classes that belong to the same fund and obtain fund-level information by averaging
(weighting the classes by total net assets) the class-level data provided by CRSP. We also
exclude index funds from our sample. Since the index identifier in CRSP is only available as of
2003, we use funds' names to determine whether they are index funds or not. For SRI funds, we
double-check the classification manually to make sure that we do not unnecessarily delete SRI
funds from the sample. We...
In finance, the Beta (β) of a stock or portfolio is a number describing the relation of its returns with those of the financial market as a whole. • An asset has a Beta of zero if its returns change independently of changes in the market's returns. A positive beta means that the asset's returns generally follow the market's returns, in the sense that they both tend to be above their respective averages together, or both tend to be below their respective averages together. A negative beta means that the asset's returns generally move opposite the market's returns: one...
For the countries in our sample, the mutual fund industry comprises 16.8% of the primary financial
assets, on average, with a median of 4.3%. As we discuss in more detail subsequently, two countries are
substantial outliers -- the fund industries in Luxembourg and Ireland account for 484% and 82% of their
country’s primary assets. We treat these two extreme observations with some care in our work. The
naïve inclusion of these countries in multivariate analyses can produce misleading results, but given that
these are two interesting data points in our analysis, it would ...
We find that trusting individuals are significantly more likely to buy stocks and risky assets
and, conditional on investing in stock, they invest a larger share of their wealth in it. This effect
is economically very important: trusting others increases the probability of buying stock by
50% of the average sample probability and raises the share invested in stock by 3.4 percentage
points (15.5% of the sample mean).
These results are robust to controlling for differences in risk aversion and ambiguity aversion.
The withdrawal of the entry-load, which
constituted a good part of the commissions
passed on to the distributors, was one of the
other factors leading to a sudden change in
the distribution space.
Generally, it is more expensive for a
distributor to reach out to a retail investor
than to a corporate investor. While an
average retail investor folio has about
35,000 INR of assets, an average corporate
investor folio has 59 lakh INR of assets.
In most OECD pension funds, bonds remain by far the dominant asset class, accounting for 50% of
total assets under management on average (OECD Pension markets in focus July 2011). Green bonds could
therefore be a channel to direct significant pension fund capital towards green projects. However the
market size for green bonds is still small and illiquid at USD 15.6 billion as of August 2011 (see next
section for discussion).
Banks dominate the financial system in Turkey and the asset size of
the sector has increased by more than threefold in the last six years,
exceeding USD 500 bn by the end of 2007. Banking and capital
markets regulation and supervision have substantially improved.
The capital adequacy ratio of the sector stood at 18.8% in 2007, well
above the EU average, and non-performing loan (NPL) ratios have
fallen. FDI into the banking system has surged since 2005 and the
share of total capital of the banking sector held by foreign investors
is now at more than 40%. The entry of...
Investigations of historic yields are therefore mostly concerned with homo-
genous goods such as commodities, for which indices are available. These
show that certain real assets can achieve higher yields than investments in
equities or bonds. A comparison of the average historic yields on raw materials
over the last 10 years (2002 to 2012) shows that investments in commodity
futures have achieved double-digit annual returns (see Fig. 15).