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As of the market close on 2/14/2020, Apple's stock price was \$324.95 per share. The forward looking dividend (based on announced dividend policy over the next year) is \$3.08 per share. The forward looking dividend yield is therefore $\frac{3.08}{324.95} = 0.00948$ or 0.95%. This means that for every share, the firm is planning to pay out \$3.08 over the ...


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"I can't use the stock I bought as collateral in the repo market right?" In principle, you can. Repos can and do happen between non-government actors, with any AAA-rated paper being preferred, but a slice of the repo market does deal in riskier instruments like corporate bonds and equities. But that piece of the repo market likely isn't big enough to ...


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The paper is not trying to say that equation (10) is derived from equation (8). Equation (8) tells us how household makes its optimal consumption and 'saving' decision (it gives us demand for investing the wealth into bonds/risky assets). The equation (10) then tells us that given the household optimal decisions (which depend on utility (8)), those ...


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There are two ways I could think of to answer this question. First, and I think this is what you are asking, "what is the covariance structure of two assets under the Fama-French 3-factor model?" Consider two assets $i$ and $j$. Let's start with their returns under the Fama-French factor model: $$ r_{i,t} = \alpha_{i} + \beta_{1,i} MKT_{t} + \beta_{2,i} ...


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In mean-variance optimisation I have typically seen the below quadratic utility function where $𝐸[𝑅]$ is the expected return (or mean return) of a possible portfolio, $\sigma^{2}$ is the return variance of that portfolio and $A$ is a parameter that the determines the sensitivity to variance. $$𝑈=𝐸[𝑅]−\frac{1}{2}A\sigma^{2}$$ As an aside, maximising % ...


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