Financial Instruments and Markets(13页).pptVIP

TABLE 5-1 Rate of Return on Selected Securities, 1926 - 1998 TABLE 5-1 (Concluded) Footnote FIGURE 5-1 If You Had Only Invested a Dollar in 1926; Performance of U.S. Capital Markets, 1926 - 1998 FIGURE 5-2 Distribution of Annual Returns on Stocks and Bonds,1926 -1998 FIGURE 5-2 (Concluded) Distribution of Annual Returns on Stocks and Bonds, 1926 -1998 FIGURE 5-3 Time Series of the Mean Price Index of the Shares of 161 Target Firms Involved in Successful Tender Offers FIGURE 5-A1 Forward Market Hedge(a) Forward Sale of DM 1 Million FIGURE 5-A1 Forward Market Hedge(b) DM Account Receivable FIGURE 5-A1 Forward Market Hedge(c) Forward Market Hedge of Receivable FIGURE 5-A2 Option Market Hedge(a) Put Option on DM 1 million FIGURE 5-A2 Option Market Hedge (b) Call Option on DM 1 million FIGURE 5-A2 Option Market Hedge(c) Option Market Hedge of Receivable *Copyright ? 2001 by The McGraw-Hill Companies, Inc. All rights reserved. Irwin/McGraw-Hill* Chapter 5 Financial Instruments and Markets Continued *Arithmetic mean of annual returns ignoring taxes and assuming reinvestment of all interest and dividend income. Source: SBBI, Stocks, Bonds, Bills and Inflation, 1999 YearbookTM, ? Ibbotson Associates, Chicago, p.33 (annually updates work by Roger G. Ibbotson and Rex A, Sinquefield. All rights reserved. Sources: Professor Aswath Damodaran’s website, /~adamodar/ New_Home_Page/ for stocks and long-term government bonds; Federal Reserve Bank of Minneapolis, woodrow.mpls.frb.fed.us/economy/calc/cpihome.html for inflation. Source: Professor Aswath Damodaran’s website, /~adamordar/New_Home_Page/ Continued Source: Professor Aswath Damodaran’s website, /~adamordar/New_Home_Page/ Source: Michael Bradley, “Interfirm Tender Offers and the Market for Corporate Control,” Journal of Business 53, no.4 (1980). 1.50 1.32 1.19 1.00 -40 -30 -20 -10 0 10 20 30 40 Announcement date Execution date Trading days Price index tA tE a b c Forward sale Receivable Hedged receivable Premium Pre