Predicting Intermediate Returns of the S The Risk Factor
نویسنده
چکیده
I analyze annual returns of the S&P 500 from 1993 – 1998. Future returns of the market are predicted using current dividend yield levels, past risk free returns and a standard deviation variable over the preceding five years. Evidence from the article suggests that future returns can be predicted when combing dividend yields with recent volatility in the market. This article suggests that recent market levels and investment momentum may pose a threat to a major correction in the future. FAJ Classifications: G10, G13, G14
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