Hostname: page-component-84b7d79bbc-g78kv Total loading time: 0 Render date: 2024-07-26T00:26:33.920Z Has data issue: false hasContentIssue false
  • English
  • Français

Evaluating Intercorporate Risk, Returns, and Trends

Published online by Cambridge University Press:  19 October 2009

Richard L. Norgaard
Get access Rights & Permissions [Opens in a new window]

Extract

This article has described a technique for evaluating intercorporate performance using risk, return, and trend. By regressing risk and trend on return for a large number of companies, an average performance plane has been established. A company's performance is measured by determining its position relative to the plane.

Type
Research Article
Information
Journal of Financial and Quantitative Analysis , Volume 6 , Issue 4 , September 1971 , pp. 1069 - 1082
Copyright
Copyright © School of Business Administration, University of Washington 1971

Access options

Get access to the full version of this content by using one of the access options below. (Log in options will check for institutional or personal access. Content may require purchase if you do not have access.)

References

[1]Brigham, E. F., and Pappas, J. L.. “Rates of Return on Common Stock.” The Journal of Business, July 1969, pp. 302–316.CrossRefGoogle Scholar
[2]Cootner, P. J., and Holland, D.. “Risk and Rate of Return.” M.I.T., DSR Project 9565, March 1963 (mimeographed).Google Scholar
[3]Fisher, I. N., and Hall, G. R.. Risk and the Aerospace Rate of Return, The Rand Corporation, Memorandum, RM–5440–PR, December 1967.Google Scholar
[4]Fisher, L., and Lorie, J. H.. “Rates of Return on Investment in Common Stocks.” The Journal of Business, January 1964, pp. 1–21. And “Rates of Return on Investments in Common Stock: The Year-by-Year Record, 1926–65.” The Journal of Business, July 1968, pp. 291–316.CrossRefGoogle Scholar
[5]Herzog, J. P. “Investor Experience in Corporate Securities: A New Technique for Measurement.” Journal of Finance, March 1964, pp. 46–62.CrossRefGoogle Scholar
[6]Little, A. D., Inc. Prices and Profits in the Property and Liability Industry Report to the American Insurance Association, November 1967.Google Scholar
[7]Markowitz, H.Portfolio Selection. New York, N.Y.: Wiley, 1958, chapter 8.Google Scholar
[8]Nerlove, M. “Factors Affecting Differences Among Rates of Return on Investments in Individual Common Stocks.” Review of Economics and Statistics, August 1968, pp. 312–333.CrossRefGoogle Scholar
[9]Norgaard, R. L., and Schick, G. J.. “Profitability in the Property and Liability Insurance Industry,” The Insurance Industry, Hearings before the Subcommittee on Antitrust and Monopoly, Ninetieth Congress, S. Res. 233, Vol. 14, U. S. Government Printing Office, 1968, pp. 8263–8278.Google Scholar
[10]Sharpe, W. F. “Capital Asset Prices: A Theory of Market Equilibrium Under Conditions of Risk,” Journal of Finance, September 1964, pp. 425–442.CrossRefGoogle Scholar
[11]Soldofsky, R. M. “Yield-Risk Performance Measurements.” Financial Analysts Journal, September–October 1968, pp. 130–139.CrossRefGoogle Scholar
[12]Stigler, G. J.Capital and Rates of Return in Manufacturing Industry. Princeton University Press, 1963.Google Scholar
[13]Tobin, J. “Liquidity Preference as Behavior towards Risk.” The Review of Economic Studies, February 1958, pp. 65–86.CrossRefGoogle Scholar