Stock and Bond Prices

Stock and Bond Prices - t+1 ) . Number of Shares Share...

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Stock and Bond Prices Stocks- higher risk, higher return Bonds- lower risk, lower return Bear- someone expecting stock prices to fall Bull- someone expecting stock prices to rise Broker- person who arranges stock trade Share Price t = (Profits t + Pres. Value (Profits
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Unformatted text preview: t+1 ) . Number of Shares Share Price t = (Profits t+n /(1+i) n ) Number of Shares i= interest rates Interest rates up, stock prices and the value of bonds fall and vice versa Bond prices are inversely related to interest rates. Fisher- CPI...
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