Researcher Breaks Stock Markets Secret
The Age
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Sydney (Australia):
A researcher at the University of New South Wales (UNSW) has made headway in explaining one of the enduring mysteries of the financial markets - and it could change the way we invest.UNSW School of Banking and Finance Professor Peter Swan has investigated why equity investments, like shares or units in a managed fund, on average outperform the bond market by an annual six to eight per cent.
This phenomenon is known as the equity premium puzzle.Australia has a high equity premium and even lower return on government debt, he said.
Professor Swan suggests his model can help identify illiquid equities, that is, stocks that do not trade very often but have the right trading characteristics.
Jan 04, 2006
The Age
______
Sydney (Australia):
A researcher at the University of New South Wales (UNSW) has made headway in explaining one of the enduring mysteries of the financial markets - and it could change the way we invest.UNSW School of Banking and Finance Professor Peter Swan has investigated why equity investments, like shares or units in a managed fund, on average outperform the bond market by an annual six to eight per cent.
This phenomenon is known as the equity premium puzzle.Australia has a high equity premium and even lower return on government debt, he said.
Professor Swan suggests his model can help identify illiquid equities, that is, stocks that do not trade very often but have the right trading characteristics.
Jan 04, 2006
