Hostname: page-component-78c5997874-v9fdk Total loading time: 0 Render date: 2024-11-15T17:35:19.119Z Has data issue: false hasContentIssue false
  • English
  • Français

Expected Growth, Required Return, and the Variability of Stock Prices

Published online by Cambridge University Press:  19 October 2009

Robert A. Haugen
Get access Rights & Permissions [Opens in a new window]

Extract

Stocks differ in the variability of their prices; thus, as the level of stock market prices swings periodically, one observes a change in structure as the prices of more volatile issues change relative to those of a more stable character. Here we attempt to empirically establish some of the differentiating characteristics of these volatile issues. In doing so we add to the empirical and analytical work of Fritzemeier [4], Clendenin [2], Latané [7], Malkiel [8], and Heins and Allison [6]. Only the last of these efforts used regression techniques.

Type
Research Article
Information
Journal of Financial and Quantitative Analysis , Volume 5 , Issue 3 , September 1970 , pp. 297 - 307
Copyright
Copyright © School of Business Administration, University of Washington 1970

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, Eugene F., and Pappas, James L., “Duration of Growth, Changes in Growth Rates, and Corporate Share Prices,” The Financial Analysts Journal, May–June 1966.CrossRefGoogle Scholar
[2]Clendenin, John C., “Quality versus Price as Factors Influencing Common Stock Price Fluctuations,” The Journal of Finance, December 1951.CrossRefGoogle Scholar
[3]Durand, David, “Growth Stocks and the Petersburg Paradox,” The Journal of Finance, September 1957.CrossRefGoogle Scholar
[4]Fritzemeier, Louis H., “Relative Price Fluctuations of Industrial Stocks in Different Price Groups,” The Journal of Business, April 1936.CrossRefGoogle Scholar
[5]Haugen, Robert A., and Heins, A. James, “The Effects of the Personal Income Tax on the Stability of Equity Value,” The National Tax Journal, December 1969.CrossRefGoogle Scholar
[6]Heins, A. James, and Allison, Stephen L., “Some Factors Affecting Stock Price Variability,” The Journal of Business, January 1966.CrossRefGoogle Scholar
[7]Latané, Henry Allan, “Price Changes in Equity Securities,” The Journal of Finance, September 1954.CrossRefGoogle Scholar
[8]Malkiel, Burton G., “Equity Yields, Growth, and the Structure of Share Prices,” The American Economic Review, December 1963.Google Scholar
[9]Williams, J. B., The Theory of Investment Value, Cambridge, 1938.Google Scholar