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Certainty Equivalents and Risk-Adjusted Discount Rates
Certainty Equivalents and Risk-Adjusted Discount Rates

Capital Account Liberalization, Institutions and Financial Development:
Capital Account Liberalization, Institutions and Financial Development:

... This regression carries with it the following interpretation: The rate of financial development depends inversely upon the level of financial development, negatively upon the extent of capital controls (or positively upon the degree of financial openness), and upon a series of economic control varia ...
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... ethnic, economic, and political lines. As a development strategy, he therefore proposed (i) population control with an effective family planning system and emigration of workers to other British colonies; (ii) diversification in agriculture and rapid change in industry structure; and (iii) a system ...
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... current earnings data. Price/Cash Flow is the ratio of a stock’s price to its cash flow per share. The price-to-cash-flow ratio is an indicator of a stock’s valuation. Price/Book is a ratio used to compare a stock's market value to its book value. It is calculated by dividing the current closing pri ...
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... will be recognized as revenue. Revenue for biological asset is increasing of asset’s value or the growth of asset. This revenue will be matched with incurred expenses to maintain and grow that asset. The result of company’s operation is to grow that asset through the series of maintenance, planting ...
Chapter 6—The Tradeoff Between Risk and Return
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... people, and services between EU members and the implementation of a large number of EU directives to harmonize regulation of capital markets and financial services. We also confront the recent Eurozone crisis. We consider a monthly sample that extends the data through July 2012. Given that the crisi ...
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Historical Performance of Commodity and Stock Markets

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TRADING VOLUME TREND AS THE INVESTOR`S SENTIMENT

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Fear of the Unknown: Familiarity and Economic Decisions

... and familiarity-biased investors. Given an endowed portfolio, there is an interval of prices within which the familiarity-biased investors do not trade. In equilibrium, familiarity-biased investors’ trade depends on the uncertainty about expected stock returns. When the degree of uncertainty is eith ...
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Stock valuation

In financial markets, stock valuation is the method of calculating theoretical values of companies and their stocks. The main use of these methods is to predict future market prices, or more generally, potential market prices, and thus to profit from price movement – stocks that are judged undervalued (with respect to their theoretical value) are bought, while stocks that are judged overvalued are sold, in the expectation that undervalued stocks will, on the whole, rise in value, while overvalued stocks will, on the whole, fall.In the view of fundamental analysis, stock valuation based on fundamentals aims to give an estimate of the intrinsic value of a stock, based on predictions of the future cash flows and profitability of the business. Fundamental analysis may be replaced or augmented by market criteria – what the market will pay for the stock, without any necessary notion of intrinsic value. These can be combined as ""predictions of future cash flows/profits (fundamental)"", together with ""what will the market pay for these profits?"" These can be seen as ""supply and demand"" sides – what underlies the supply (of stock), and what drives the (market) demand for stock?In the view of others, such as John Maynard Keynes, stock valuation is not a prediction but a convention, which serves to facilitate investment and ensure that stocks are liquid, despite being underpinned by an illiquid business and its illiquid investments, such as factories.
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