Appendices to Expected Returns to Stock Investments by Angel Investors in Groups

Previous research calculates realized internal rates of return on angel investments but does not estimate expected returns. We present the first estimates of expected returns on angel investments by applying a consistent statistical framework to a new data set. Our sample spans 1972 to 2007 with 419 exited investments. Our results suggest that expected returns on stock for angel investors in groups are about 70 percent per year in excess of the riskfree rate. These expected returns have a large variance and are heavily skewed, with many losses and occasional extraordinarily high returns. DeGennaro and Dwyer (2012) refers to these appendicies.The paper "Expected Returns to Stock Investments by Angel Investors in Groups" to which these Appendices apply is available at the following URL: "http://ssrn.com/abstract=1679207" http://ssrn.com/abstract=1679207