Grinold-Kroner Model

Mar 7, 2014

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in Level III Capital Market Expectations

The Grinold-Kroner model is an equation to estimate the return on a stock; although the components of the model are reasonable (once you think of them), they will require a bit of memorization at first, until you’ve worked with the model a bit and it’s become habitual. Here it is: \[\hat R_i\ =\ \frac{D_1}{P_0}\ +\ […]

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