Given the sensitivity of stock valuation models to the discount rate k*, it follows that their operational usefulness is significantly dependent upon the accuracy of the estimate of k*. The purpose of this study is to illustrate the use of the geometric mean to estimate k*. The usual approach to...

The theoretical valuation model has been shown to be mathematically equivalent to a price-earnings approach to stock valuation. The theoretical model explicitly includes estimates of long-run dividend (or earnings) growth. Because the price-earnings ratio approach is equivalent, it also...

This study tests whether a "portfolio effect" exists in a given branch bank; i.e., does the addition of branches reduce the variability of demand deposits for the bank? The approach taken is narrower than that in the usual portfolio selection model. The study measures risk by the intrayear...