Stock and Bond Prices

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

Info iconThis preview shows page 1. Sign up to view the full content.

View Full Document Right Arrow Icon
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
Background image of page 1
This is the end of the preview. Sign up to access the rest of the document.

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...
View Full Document

This note was uploaded on 04/16/2008 for the course EC 102 taught by Professor Zagorsky during the Spring '08 term at BU.

Ask a homework question - tutors are online