Bond-Market Indexes

Bond-Market Indexes - 5-1Bond-Market Indexes•Global...

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Unformatted text preview: 5-1Bond-Market Indexes•Global Government Bond Indexes–Global bond market dominated by government issues–Several indexes created by major investment firms•Measure total rates of return•Use market-value weighting•Use trader pricing•But sample sizes and numbers of countries differ –Differences affect long-term risk-return performance5-2Composite Stock-Bond Indexes•Beyond separate stock indexes and bond indexes for individual countries, a natural step is a composite series that measures the performance of all securities in a given country•This allows examination of benefits of diversification with a combination of asset classes such as stocks and bonds in addition to diversifying within the asset classes of stocks or bonds5-3Composite Stock-Bond Indexes•Merrill Lynch-Wilshire U.S. Capital Markets Index (ML-WCMI)–Market-value weighted index measures total return performance of the combined U.S....
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This note was uploaded on 01/19/2012 for the course FIN 4360 taught by Professor Davidbray during the Spring '12 term at Kennesaw.

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Bond-Market Indexes - 5-1Bond-Market Indexes•Global...

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