FIN 501 Lecture Notes - Lecture 1: Pietro Frua, Proa
20 Nov 2014
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Dividend income cf received during the investment. Annual stock dividend as a % of the initial stock price. For each we invested, we received in dividends o. Change in stock price as a % of the initial stock price. For each we invested, we get x% in capital gains o. Holding period the length of time you own the stock. 1+ear = (1 + holding period % return)m. Lt corporate bonds high quality bonds with 20 ytm. Lt government bonds govn"t bonds with 20 ytm. Total market capitalization = stock price x # shares in stock o. Total value of the company"s stock ; large caps big companies. Average squared difference between the actual + the average returns. ; in the same units as the average (volatility) Arithmetic average return : what was your return in an average year over a particular period? o. Tells you what you earned in a typical year o.
