Profit earned by a corporation and distributed to its shareholders.
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Dividends
_____1_____ - This is referred to as "Cyclical Unemployment."
The changing structure of the economy - This is referred to as "_____2_____," and is often
associated with technological change.
Also, "_____3_____," unemployment associated with better job opportunities (not a bad
thing).
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So what does drive unemployment?
1) The Business Cycle
, 2) Structural Unemployment
3) Frictional Unemployment
reflects the trade-off between risk and return.
Generally speaking, the higher the return on an asset the riskier it is.
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The Risk Premium
Stocks (S&P 500, since 1928) 9.60%
U.S. Corporate Bonds (Long-term) 6.00%
U.S. Treasury Bonds (10-yr note) 5.00%
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Long-Run Average Annual Rates of (Nominal)Return on Stocks and Bonds
How to calculate the yield price of a bond?
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Yield = Coupon Payment/Market Price
So prices and yields move inversely.
Give this one a try later!
Dividends
_____1_____ - This is referred to as "Cyclical Unemployment."
The changing structure of the economy - This is referred to as "_____2_____," and is often
associated with technological change.
Also, "_____3_____," unemployment associated with better job opportunities (not a bad
thing).
Give this one a try later!
So what does drive unemployment?
1) The Business Cycle
, 2) Structural Unemployment
3) Frictional Unemployment
reflects the trade-off between risk and return.
Generally speaking, the higher the return on an asset the riskier it is.
Give this one a try later!
The Risk Premium
Stocks (S&P 500, since 1928) 9.60%
U.S. Corporate Bonds (Long-term) 6.00%
U.S. Treasury Bonds (10-yr note) 5.00%
Give this one a try later!
Long-Run Average Annual Rates of (Nominal)Return on Stocks and Bonds
How to calculate the yield price of a bond?
Give this one a try later!
Yield = Coupon Payment/Market Price
So prices and yields move inversely.
