An introduction to security returns

The equity premium - the difference between the return achievable from investment in the equity market (R_M ) and the risk-free rate of return (R_F )- plays an important part in corporate finance. The expression equity premium (sometimes referred to as the equity risk premium) is used to denote the ex ante expectation of investors. The term excess return refers to the ex post achievement of stock returns over and above the risk-free return. If we compare US and UK returns, we find that total returns, real returns and the value of (R_M - R_F ) are all marginally higher for the UK. Summarized evidence appears in Table 1 and Table 6. Such greater returns may be due to an increased risk premium related to increasing unexpected inflation. Particularly important in estimating the equity risk premium is whether excess returns are measured using a geometric or an arithmetic mean return. To a significant extent, this question revolves around mean reversion in stock returns. Evidence of mean reversion is substantial, although it cannot be proved unequivocally. Given the weight of evidence of mean reversion, there may be a strong case for the use of a geometric mean with an equity premium of between 3% and 5% - or even less.     

The Applied Economics of (International) Business: A Personal Perspective

The applied economics of international business (IB) has been successful in explaining foreign direct investment, the existence and growth of multinational enterprises (MNEs) and in integrating new concepts such as trust in the analysis of joint ventures. It now needs to face challenges in fully integrating culture into the rubric and into a comprehensive analysis of the varied phenomena of globalisation.     

Potential Discrimination in Structured Employment Interviews

This experimental study examines the effects of bias toward persons with disabilities (PWDs) upon the employment interview decision process. The design and operationalization of the study permitted examination of the effects of specific disabilities, interview performance, and the resulting interaction between disability and interview performance, using 630 undergraduate students at a major university in the southwestern United States as subjects. The results indicate that (1) interview performance has a favorable, significant main effect upon subsequent HRM decisions, (2) specific disabilities, that is, child care demands, HIV-positive status, and being wheelchair-bound, have unfavorable, significant main effects upon subsequent HRM decisions, and (3) the presence of any of the disabilities decreased the favorable impact of superior interview performance. The limitations of the structured interview to mitigate bias were demonstrated. Given the pervasive, unfavorable treatment directed toward PWDs, it appears that the enactment of the Americans with Disabilities Act of 1990 (1993) is warranted. The public policy implications of these results and recommendations for future research were discussed.     

The need to consider the predictive capacity of intelligence and its malleability within design and technology education research

International Journal of Technology and Design Education - General intelligence is a fundamental human capacity with significant educational implications. However, it is often not considered in...