It is a fairly common practice for the CEOs of one corporation to serve on the Board of Directors of another corporation. The question addressed here is the effect that the presence of outside CEOs on the Board of Directors has on the compensation of the firmÕs CEO. There are two alternative...

Under rule 12b-1, mutual funds are allowed to charge a fee of up to 100 basis points per year to cover marketing and distribution costs. Under NASD rules, a fund may charge a 12b-1 fee of up to 25 basis points per year and still advertise itself as a no load fund. This fee is used to make the...

According to the capital asset pricing model, a stockÕs required rate of return is determined by systematic risk, otherwise known as beta. Usually betas are estimated using historic data. It is shown here that future betas have a stronger relationship to analystsÕ long-term growth forecast...