Holding-11 - Buy Sell Price falls below limit Limit order...

Info iconThis preview shows pages 1–3. Sign up to view the full content.

View Full Document Right Arrow Icon
Price falls below limit Price rises above limit Buy Limit order buy Stop- buy order Sell Stop- Loss order Limit -sell order
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Holding-period return(HPR)=Ending price-Beginning price+Cash dividend/Beginning price Arithmetic Average-Mean Geometric average-[(1+r)x(1+r)x(1+r)]1/4-1 APR=Per-period ratexPeriods per year APR=[(1+EAR^)1/n] – 1]xn 1+EAR=e^APR [ x −] == 2 1 =variance= Ơ 2 Standard deviation= Ơ E(r)=ProbabilityxHPR Sharpe(reward-to-volatility) measure=[E(r r )-r r ]/ Ơ 1 R=nominal interest rate, r=real interest rate, i=inflation rate R=R-I, 1+r=(1+R)/(1+i), r=(R-i)/(1+i), R=r+E(i) Cov(r r ,r r )= [ == 1 (i)-r r ][r r (i)-r r ] Correlation coefficient= Ƥ 1 =Cov(r r ,r r )/ Ơ 1 Ơ 1 Cov(r r ,r r )= Ƥ 1 Ơ 1 Ơ 1 E(r r )=r r E(r r )+r r E(r r ) Ơ 12 = ( [ Ơ 1 ) 2 +( [ Ơ 1 ) 2 + (( 2 1 Ơ 1 )( [ Ơ 1 ) Ƥ & Excess Return=r r =E(r r )+r r M+r r CAPM-E(r r )=r r +r r [E(r r )- r r ] Value=Dividend/Discount rate-Growth rate Nominal return=Interest+Price appreciation/Initial price Real return=(1+Nominal return/1+Inflation)=1
Background image of page 2
Image of page 3
This is the end of the preview. Sign up to access the rest of the document.

This note was uploaded on 03/28/2010 for the course BUS 011823 taught by Professor Smith during the Spring '10 term at ITT Tech Flint.

Page1 / 3

Holding-11 - Buy Sell Price falls below limit Limit order...

This preview shows document pages 1 - 3. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online