Hassett The Risk Premium Factor

A New Model for Understanding the Volatile Forces that Drive Stock Prices
1. Auflage 2011
ISBN: 978-1-118-11859-7
Verlag: John Wiley & Sons
Format: PDF
Kopierschutz: Adobe DRM (»Systemvoraussetzungen)

E-Book, Englisch, 208 Seiten, E-Book

Reihe: Wiley Finance Editions

A radical, definitive explanation of the link between lossaversion theory, the equity risk premium and stock price, and howto profit from it
The Risk Premium Factor presents and proves a radical newtheory that explains the stock market, offering a quantitativeexplanation for all the booms, busts, bubbles, and multipleexpansions and contractions of the market we have experienced overthe past half-century.
Written by Stephen D. Hassett, a corporate developmentexecutive, author and specialist in value management, mergers andacquisitions, new venture strategy, development, and execution forhigh technology, SaaS, web, and mobile businesses, the bookconvincingly demonstrates that the equity risk premium isproportional to long-term Treasury yields, establishing aconnection to loss aversion theory.
* Explains stock prices from 1960 through the present includingthe 2008/09 "market meltdown"
* Shows how the S&P 500 has consistently reverted to valuespredicted by the model
* Solves the equity premium puzzle by showing that it isconsistent with findings on loss aversion
* Demonstrates that three factors drive valuation and stockprice: earnings, long term growth, and interest rates
Understanding the stock market is simple. By grasping thesimplicity, business leaders, corporate decision makers, privateequity, venture capital, professional, and individual investorswill fully understand the system under which they operate, and findthemselves empowered to make better decisions managing theirbusinesses and investment portfolios.

Autoren/Hrsg.

Hassett, Stephen D.

Über Autor(innen)

STEPHEN D. HASSETT is a corporate development executive with Sage North America, a subsidiary of The Sage Group plc, a leading global supplier of business management software and services. He has published in the Journal of Applied Corporate Finance and is a regular contributing author for the Seeking Alpha investment website. Previously, he was an executive at the Weather Channel, software entrepreneur and consultant with Stern Stewart & Co. He holds an MBA from the Darden School of Business at the University of Virginia.