Assignment 1

Question 9

Question 9

by Michel Ometto De Macedo -
Number of replies: 1

Hello professor,

When calculating dividend yield, should P* index be calculated from the beginning of the in-sample period? I.e. is P* = 1 in 1975-01?

Thanks

In reply to Michel Ometto De Macedo

Re: Question 9

by Diogo Manuel Gonçalves Luís -
Hi Michel,

Yes that is correct. Since your dividends are calculated using that index, you need to take it into consideration to guarantee consistency.

Best,

Diogo