Содержание
- 2. © 2008 Pearson Education Canada 7. Ch 7: Stock Markets and Efficient Market Hypothesis. (*) Topics:
- 3. © 2008 Pearson Education Canada 7. The Markets for Stocks. (*) In Canada, stocks are traded
- 4. Common Stock Common stock is the principal way that corporations raise equity capital. Stockholders have the
- 5. Several Kinds of “Value” There are several types of value, of which we are concerned with
- 6. 9.1 Reading Stock Listings The following newspaper stock listing is usually printed as a horizontal string
- 7. Reading Stock Listings Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall
- 8. Reading Stock Listings Hi = 123 1/8: The highest price the stock has traded at over
- 9. Reading Stock Listings Div = 4.84: The last quarterly dividend multiplied by 4 Yld % =
- 10. Reading Stock Listings Hi = 115: Highest share price of the day Lo = 113: Lowest
- 11. © 2008 Pearson Education Canada 7. The price of common stock. (*) Common stocks have two
- 12. Equation Total Return Copyright © 2007 Pearson Addison-Wesley. All rights reserved. 9-
- 13. Rate of Total Return Copyright © 2008 Pearson Education Canada 10-
- 14. One-Period Valuation Model © 2008 Pearson Education Canada 7.
- 15. Generalized Dividend Valuation Model © 2008 Pearson Education Canada 7.
- 16. Gordon Growth Model © 2008 Pearson Education Canada 7.
- 17. © 2008 Pearson Education Canada 7. According to the above model, current stock prices depend on
- 18. Example 9.1 Stock Prices and Returns Copyright © 2007 Pearson Addison-Wesley. All rights reserved. 9-
- 19. Example 9.1 Stock Prices and Returns Copyright © 2007 Pearson Addison-Wesley. All rights reserved. 9-
- 20. Example Valuing a Firm with Constant Dividend Growth Copyright © 2007 Pearson Addison-Wesley. All rights reserved.
- 21. Example 9.2 Valuing a Firm with Constant Dividend Growth Copyright © 2007 Pearson Addison-Wesley. All rights
- 22. Factors Affecting Stock Prices Business cycles Interest rate changes Investor sentiment about Economy, Earnings And markets
- 23. interest rate = risk free rate + risk premium, ke = rf + rp then
- 24. higher risk free rate, lower stock price higher risk premium, lower stock price higher dividends, higher
- 25. example D = $2, g = 2%, rf = 3%, rp = 5% P= $2/(.03+.05-.02) P
- 26. what if risk premium rises to 7%? P = $2/(.03+.07-.02) = $2/.08 = $12.50 what if
- 27. © 2008 Pearson Education Canada 7. Gordon Model- Applications. The effect of monetary policy. The Gordon’s
- 28. © 2008 Pearson Education Canada 7. Price-Earnings Ratio: The price/earnings ratio, which equals to the company’s
- 29. Price Earnings Valuation Method (Cont’d) The PE ratio can be used to estimate the value of
- 30. Stock Analysis Fundamental analysis Quantitative analysis Based on financial statements Qualitative analysis More subjective Examines management
- 31. © 2008 Pearson Education Canada 7. How the Market sets Stock Prices. (a)Theory of Rational Expectations
- 32. © 2008 Pearson Education Canada 7. Rational Expectations Rational expectations theory views expectations as being identical
- 33. The Efficient Market The efficient-market hypothesis (EMH) asserts that financial markets are "informationally efficient", or that
- 34. Implications of the Theory of Rational Expectations Even though a rational expectation equals the optimal forecast
- 35. Implications If there is a change in the way a variable moves, the way in which
- 36. Efficient Markets: An Application of Rational Expectations © 2008 Pearson Education Canada 7.
- 37. Implications of the EMH for the stock market: Investing in the Stock Market: Recommendations from investment
- 38. Evidence Against Market Efficiency Small-firm effect January Effect Market Overreaction Excessive Volatility Mean Reversion New information
- 39. (b)Behavioural Finance. The lack of short selling (causing over-priced stocks) may be explained by loss aversion.
- 40. (b) Behavioural Finance. Behavioral economists attribute the imperfections in financial markets to a combination of cognitive
- 41. Bubbles Large gaps between actual asset price and fundamental value Internet stock bubble of late 1990s
- 42. In the Generalized Dividend Valuation Model equation: “Fundamentals”: “Bubble”: wi
- 43. Implications of efficiency evidence very difficult for average person to beat the market trying to do
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