Rate of Return under Re-Capitalisation: A Note

Publication Type

Journal Article

Publication Date

10-1988

Abstract

Conclusion The measure in (6) is suggested as the most appropriate measure when n is over a month or so for it explicitly takes into account time value. For small n (e.g. daily returns), we can assume k=0, n=1, and therefore, the time value is not an issue and we can simplify (6) as: $$1 + R_{t + 1} = {{[P_{t + 1} \{ 1 + ({1 \mathord{\left/ {\vphantom {1 N}} \right. \kern-\nulldelimiterspace} N})\} + D_{t + 1} ]} \mathord{\left/ {\vphantom {{[P_{t + 1} \{ 1 + ({1 \mathord{\left/ {\vphantom {1 N}} \right. \kern-\nulldelimiterspace} N})\} + D_{t + 1} ]} {[P_t ({I \mathord{\left/ {\vphantom {I N}} \right. \kern-\nulldelimiterspace} N})]}}} \right. \kern-\nulldelimiterspace} {[P_t ({I \mathord{\left/ {\vphantom {I N}} \right. \kern-\nulldelimiterspace} N})]}}$$ .

Discipline

Business

Research Areas

Finance

Publication

Asia Pacific Journal of Management

Volume

6

Issue

1

First Page

141

Last Page

147

ISSN

0217-4561

Identifier

10.1007/bf01732255

Publisher

Springer Verlag

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