Stock Asset Returns Are Predictable Part 2

Data source, method, and variable structure 1. There are two ways to calculate price-earnings ratio of revenue calculation 1.1. Continuous return This is a percentage return that investors buy at the end of a particular day / month t-1 and sell at the end of the next day / month. For t day and stock A, the daily rate of return R At is defined as follows. R At = {In (P At / PA, t - 1)} * 100 shares will pay dividends on the t th day. + Divt / PA, t - 1)} × 100 1.2. Another method of discrete return calculation of stock returns is defined as R At = {(P At / P A, t - 1) -1} × 100 1.3. Continuous combined income and discrete income

In this survey, the stock return is the ratio of the dependent variable to the total price of the company's existing stock minus the current stock price from the current stock price. Macroeconomic factors have a large positive correlation, the stock price rises, and if the macroeconomic factors have a negative correlation, the stock price falls. For example, Tursoy, Gunsel, and Rjoub (2008) are investigating macroeconomic variables that may affect different industries in different ways.

Stock markets are not always in a bubble state. The shares give some ownership to the owner's large enterprise. A real company has a real benefit is that you have real worthworthy assets. In fact, if we can accurately predict the company's profit, we can accurately calculate the value of the stock. Future revenue is the reality that the stock market price is based on. However, investors may not agree on where the proceeds are going, so some think that the stock is cheap but others think the stock is expensive. As the news aired, some investors changed their mind, which led to fluctuations in stock prices.

Because of the effective stock market as part of effective portfolio management, the impact of stock selection on investor returns is very limited. The Efficient Market Hypothesis (EMH) claims that the stock market is effective if the market price of the company's stock can quickly and accurately reflect all relevant information (Lumby, S., Jones, C., (2004 )). In the asset selection and portfolio, investors need to remember that the risk is high and need to select the portfolio on average / differential basis (that is, Markowitz's effective investor). However, due to the way that investments are combined and allocated to available asset classes, the portfolio will result in an increase in portfolio revenue. Stocks and bonds and cash, large companies are very small, a combination of UK companies and foreign stocks, and value companies and growth companies