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Chapter 1 Asset Returns - Princeton University

Chapter 1 Asset Returns - Princeton University

fan.princeton.edu

2 Chapter 1 Asset Returns risky assets such as bonds can be even smaller in a shortperiod and are often quoted in basis points,whichis10,000Rt. The one period gross return is defined as Pt/Pt−1 = Rt +1. It is the ratio of the new market value at the end of the holding period over the initial market value.

  Chapter, Asset, Return, Chapter 1 asset returns

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