Increasing Quality and Equity in Education: The Case of Chile The
actual and counterfactual distributions of school averages are nearly identical. If the
counterfactual reflects a substantial increase in sorting on school effectiveness, it must be
that effectiveness is responsible for a very small share of the across-school variation in SAT
Although the characteristics of emerging markets are relatively diverse, Thailand can
represent the rest of the emerging countries, those in Asia in particular. This is because the
Thai stock market exhibits several behaviours which are consistent with the average for
emerging markets. For example, while the ten-year annualized growth of emerging markets
ranged from -0.03% (Taiwan) to 20.45% (India), the Thai stock market grew by 12.36% per
year and this figure is comparable to the growth of the MSCI Emerging Markets index
11.69% (MSCI, 2010).
The financial statements of foreign operations are translated into the Dutch guilder, the
Company's reporting currency. Assets and liabilities are translated using the exchange rates
on the respective balance sheet dates. Income and expense items are translated based on the
average rates of exchange for the periods involved. The resulting translation adjustments
are charged or credited to stockholders' equity. Cumulative translation adjustments are
recognized as income or expense upon disposal of foreign operations.
Dalton et al. reported the average production costs and returns for 2004 from a sample of 30
organic dairy farms in Vermont and Maine. They reported a total cost for organic milk
production of $22.58 per cwt, before a deduction for unpaid operator labor and management,
which was not significantly different from milk revenues. Thus organic milk production did not
generate any return to unpaid labor and management nor did it produce a positive return to farm
assets or equity.
About $4 trillion is currently invested in U.S. domestic equity mutual funds, making
them a fundamental part of the average U.S. investor’s overall portfolio. Since about 90%
of these funds are actively managed, researchers have devoted extensive efforts in studying
their performance and have found that, on average, active management underperforms
passive benchmarks. For example, Wermers (2000) ﬁnds that the average U.S. domestic
equity fund underperforms its overall market, size, book-to-market, and momentum
benchmarks by 1.2%/year over the 1975–1994 period.
How would deleveraging affect a bank’s weighted average cost of funds?
Our results suggest that if leverage declines, the cost of equity will also fall. For
example, if leverage of the average bank halves to 10, the market beta would
fall by 10 basis points. This implies that the average equity factor for banks will
fall by 0.4% to 13.0%. Assuming a 5% cost of debt, the weighted average cost
of funds for the bank would be 5.8% (ie 0.10*13.0% + 0.90*5%).
This is only
about 40 basis points higher than when leverage is equal to 20, the average...
We rst construct Pan-European size, book-to-market, and momentum risk factors for stocks.
Then, we report on the average performance of European mutual funds over our time period using
these benchmarks. Our ndings are similar to those of many studies of U.S. mutual funds (e.g.,
Carhart, 1997 and Wermers, 2000). Specically, the median one-factor and four-factor alphas are
-0.90%/year and -0.32%/year, respectively. This nding indicates that our benchmarks successfully
control for common variation in European equity mutual fund returns....
Abstract Most finance textbooks present the Weighted Average Cost of Capital WACC calculation as: WACC = Kd×(1-T)×D% + Ke×E% (1) Where Kd is the cost of debt before taxes, T is the tax rate, D% is the percentage of debt on total value, Ke is the cost of equity and E% is the percentage of equity on total value. All of them precise (but not with enough emphasis) that the values to calculate D% y E% are market values. Although they devote special space and thought to calculate Kd and Ke,
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.
Over $4 trillion is currently managed by equity mutual funds in the U.S., with roughly
90 percent invested in actively managed accounts. These mutual funds hold over 25
percent of the outstanding equity value of the average U.S. common stock. This high
level of ownership makes it very unlikely that the equity fund industry as a whole is able
to outperform the market by a large margin. However, several recent papers show some
evidence of manager skills among subgroups of funds (see, for example, Gruber (1996)).
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).
There is also a good dataset for open-end real estate funds. Over the last 10
years, investors in this asset class have been able to achieve a higher average
annual return than on investments in equity funds (see Fig. 16). However,
compared with most bond funds, open-end real estate funds come off worse.
This relationship has also generally been maintained over longer periods of up
to 20 years: however it is probably also be affected by the poor performance of
the stock market in the last few years. On a 30-year average, equity funds with
an investment focus in Germany...
At the end of Q3 2010, the global ETF industry had $1.2 trillion in assets under management,
85% in plain-vanilla ETFs referenced to equity indices (Graph 1), which is equivalent to 5%
of global mutual fund assets and 2% of global equity market capitalisation. The industry has
grown at an average of 40% a year over the past 10 years, which dwarfs the growth rate of
both global mutual funds and equity markets (around 5% a year). Most ETFs are listed on US
and European exchanges, but they provide exposure to a much more diverse range of markets
To put the profit values in perspective, we calculate profitability ratios. Rate of return on assets (ROA) is the farm operating profit (equal to net farm income plus interest expense less value of operator labor and management) divided by average total farm asset value (valued at current market value). Rate of return on assets is a measure of how much profit the farm business assets generated. The average 2005 dairy farm ROA (Market) was 3.2 percent, below 2004 value of 5.2 percent (Table 3). Return on equity tells a similar story.
As previously mentioned, preferred stocks are junior to the debt obligations of
the company and senior to common equity. Figure 3 shows the priority of various
security types in a typical capital structure. In this graph we scaled the order of priority
by the average proportion of each security type for financial and non-financial firms in
the S&P 500, in order to highlight not only the priority but also the different relative
importance of each security type for financial versus non-financial firms. When a firm
is liquidated, debt holders are paid first. If debt holders are...
This paper, by Broadbent and Daly, identifies 44 instances of large fiscal adjustments over the last 35
years in OECD countries. Of these 44 adjustments, it identifies 11 cases of fiscal adjustment that
were accomplished primarily through cuts in spending. The study argues that these expansions were
considerably more robust than the expansions following tax adjustments. The paper argues that the
expenditure-driven fiscal adjustments led to sharply lower bond yields and strong surges in equity
West Collaborative Health Profile aim is to provide the overall needs assessment specific
to this collaborative and to inform the implementation of the Primary Care Strategy. It
supplements Haringey’s Joint Strategic Needs Assessment (JSNA) 2012.
The west collaborative covers a vibrant area of an older population that is geographically
most varied, encompassing some of the wealthiest areas in the country and some areas
which are amongst 20% most deprived in the country. It is the biggest of the four
collaboratives with the highest number of population registered with GPs (88,405).
Bank balance sheets are highly leveraged. The average ratio of total
assets to shareholders’ capital is about three for non-financial companies, but it
is six times that figure for banking firms.
From the shareholders’ perspective,
higher bank leverage boosts the return on equity for any given level of bank
profits. This, however, imposes higher risk, since leverage also increases the
volatility of that return. Indeed, in most advanced economies bank equity prices
have been more volatile than those of non-financial companies in the last four
Jeremy Grantham, who has consistently identified overpricing in the US
equity markets – he flagged both the Dot Com bubble and the irrational
pricing that preceded the financial crisis, for instance – said last week
that US stocks are “a little expensive” and bonds are “disgusting.” But
his sternest warning to investors concerned the longer-term threat posed
by global resource constraints.
Abnormally high corporate profits are the primary reason for Grantham’s
contention that stocks are overvalued.
The process of urbanization in India is at a
critical point of transition. India has a young
and rapidly growing population, a potential
demographic dividend that needs to be tapped
accordingly. Addressing life in India’s cities is
a central pillar of inclusive growth.
McKinsey Global Institute (MGI) estimates that
cities could generate 70 percent of net new
jobs created by 2030, produce more than 70
percent of Indian GDP, and drive a near fourfold
increase in per capita incomes across the
nation.112 And yet, cities are not just home to