QUESTION
Copyright
| THE COST OF CAPITAL AT AMERITRADE | ||||||||
| Harvard Business School Case 201-046 (2nd edition) | ||||||||
| Case Software 2-201-711 | ||||||||
| Copyright © 2000 by the President and Fellows of Harvard College | ||||||||
| Professors Mark Mitchell and Erik Stafford prepared this case with the assistance of Research Associates Jose Camacho and Aldo Sesia as the basis for class discussion rather than to illustrate either effective or ineffective handling of an administrative situation. | ||||||||
Exhibit 1
| Exhibit 1 Consolidated Annual Income Statements for the Fiscal Year Ending in September | |||
| 1997 | 1996 | 1995 | |
| Net Revenues | |||
| Transaction Income | $51,936,902 | $36,469,561 | $23,977,481 |
| Net Interest | 18,193,946 | 11,477,878 | 8,434,584 |
| Other | 7,107,492 | 6,391,314 | 2,607,538 |
| Total Net Revenues | 77,238,340 | 54,338,753 | 35,019,603 |
| Expenses Excluding Interest | |||
| Employee Compensation | 19,290,808 | 14,049,642 | 8,481,977 |
| Commissions and Clearance | 3,320,262 | 2,530,642 | 2,516,796 |
| Communications | 5,623,468 | 3,685,535 | 2,352,590 |
| Occupancy and Equipment Cost | 5,422,839 | 2,889,654 | 1,626,725 |
| Advertising and Promotion | 13,970,834 | 7,537,265 | 4,842,392 |
| Provision for Losses | 59,000 | 148,014 | 1,428,663 |
| Amortization of Goodwill | 363,002 | 363,002 | 94,152 |
| Other | 7,763,014 | 4,717,406 | 2,846,280 |
| Total Expenses Excluding Interest | 55,813,227 | 35,921,160 | 24,189,575 |
| Income Before Income Taxes | 21,425,113 | 18,417,593 | 10,830,028 |
| Taxes | 7,602,964 | 7,259,248 | 3,798,881 |
| Net Income | $13,822,149 | $11,158,345 | $7,031,147 |
| EPS | $1.00 | $0.87 | $0.55 |
| Shares Outstanding | 13,768,889 | 12,813,823 | 12,813,823 |
| Source: Ameritrade Annual Report, 1997. | |||
Exhibit 2
| Exhibit 2 Consolidated Annual Balance Sheets for the Fiscal Year Ending in September | ||
| 1997 | 1996 | |
| ASSETS | ||
| Cash and Cash Equivalents | $53,522,447 | $15,767,170 |
| Cash and Investments Segregated in Compliance with Federal Regulations | 319,763,921 | 175,668,497 |
| Receivable from Brokers, Dealers, and Clearing Organizations | 17,823,640 | 15,096,862 |
| Receivable from Customers and Correspondents | 325,407,147 | 166,075,055 |
| Furniture, Equipment, and Leasehold Improvements | 8,709,923 | 3,746,178 |
| Goodwill | 6,346,763 | 6,709,765 |
| Equity Investments | 7,597,972 | 7,157,783 |
| Other Investments | 5,000,000 | 5,000,000 |
| Deferred Income Taxes | 39,314 | 444,378 |
| Other Assets | 13,145,616 | 6,013,544 |
| Total Assets | $757,356,743 | $401,679,232 |
| LIABILITIES AND STOCKHOLDERS’ EQUITY | ||
| Liabilities: | ||
| Payable to Brokers, Dealers, and Clearing Organizations | 1,404,999 | 1,193,479 |
| Payable to Customers and Correspondents | 666,279,440 | 356,942,970 |
| Accounts Payable and Accrued Liabilities | 19,252,931 | 7,221,008 |
| Notes Payable to Bank | — | 4,853,000 |
| Income Taxes Payable | 3,430,279 | 806,711 |
| Total Liabilities | 690,367,649 | 371,017,168 |
| Stockholders’ Equity: | ||
| Class A Common Stock | 131,534 | 114,494 |
| Class B Common Stock | 13,644 | 13,644 |
| Additional Paid in Capital | 23,297,506 | 809,665 |
| Retained Earnings | 43,546,410 | 29,724,261 |
| Total Stockholders’ Equity | 66,989,094 | 30,662,064 |
| Total Liabilities and Stockholders’ Equity | $757,356,743 | $401,679,232 |
| Source: Ameritrade Annual Report, 1997. | ||
Exhibit 3
| Exhibit 3 Capital Market Return Data (Historical and Current) | ||
| Prevailing Yields on U.S. Government Securities (August 31, 1997) | ||
| Annualized Yield to Maturity | ||
| 3-Month T-Bills | 5.24% | |
| 1-Year Bonds | 5.59% | |
| 5-Year Bonds | 6.22% | |
| 10-Year Bonds | 6.34% | |
| 20-Year Bonds | 6.69% | |
| 30-Year Bonds | 6.61% | |
| Historic Average Total Annual Returns on U.S. Government Securities and Common Stocks (1950-1996) | ||
| Average Annual Return | Standard Deviation | |
| T-Bills | 5.2% | 3.0% |
| Intermediate Bondsa | 6.4% | 6.6% |
| Long-term Bondsb | 6.0% | 10.8% |
| Large Company Stocksc | 14.0% | 16.8% |
| Small Company Stocksd | 17.8% | 25.6% |
| Historic Average Total Annual Returns on U.S. Government Securities and Common Stocks (1929-1996) | ||
| Average Annual Return | Standard Deviation | |
| T-Bills | 3.8% | 3.3% |
| Intermediate Bondsa | 5.4% | 5.8% |
| Long-term Bondsb | 5.5% | 9.2% |
| Large Company Stocksc | 12.7% | 20.3% |
| Small Company Stocksd | 17.7% | 34.1% |
| Sources: Yields are from Datastream, historical data are from Ibbotson Associates, SBBI 2000 Yearbook. | ||
| aPortfolio of U.S. Government bonds with maturity near 5 years. | ||
| bPortfolio of U.S. Government bonds with maturity near 20 years. | ||
| cStandard & Poor’s 500 Stock Price Index. | ||
| dA subset of small cap stocks traded on the NYSE (1926-1981); Dimensional Fund Advisor’s Small Company Fund (1982-1997). | ||
Exhibit 4
| Exhibit 4 Selected Data for Comparable Firms | |||||||
| Debt/Value | Debt/Capital | ||||||
| (Market Values) | (Book Values) | ||||||
| Firm Name (Industry) | Current | Average 1992-1996 |
Current | Average 1992-1996 |
Brokerage Revenues (%) |
||
| A G Edwards (Investment Services)a | 0.00 | 0.00 | 0.00 | 0.00 | 57 | ||
| Bear Stearns (Investment Services) | 0.60 | 0.50 | 0.69 | 0.60 | 35 | ||
| Charles Schwab Corp (Discount Brokerage) | 0.05 | 0.08 | 0.25 | 0.30 | 82 | ||
| E*Trade (Discount Brokerage) | 0.00 | NA | 0.00 | NA | 95 | ||
| Lehman Brothers (Investment Services) | 0.79 | NA | 0.80 | 0.79b | 13 | ||
| Mecklermedia (Internet) | 0.00 | 0.00b | 0.00 | 0.00b | 0 | ||
| Merrill Lynch & Co (Investment Services) | 0.57 | 0.52 | 0.77 | 0.65 | 37 | ||
| Morgan Stanley Dean Witter (Investment Services) | 0.57 | 0.53 | 0.70 | 0.63 | 12 | ||
| Netscape (Internet) | 0.00 | NA | 0.00 | NA | 0 | ||
| Paine Webber (Investment Service) | 0.51 | 0.53 | 0.63 | 0.58 | 46 | ||
| Quick & Reilly Group (Discount Brokerage) | 0.00 | 0.00 | 0.00 | 0.00 | 81 | ||
| Raymond James Financial (Investment Services) | 0.05 | 0.04 | 0.07 | 0.06 | 51 | ||
| Waterhouse Investor Srvcs (Discount Brokerage) | NA | 0.38 | NA | 0.70c | 99 | ||
| Yahoo! (Internet) | 0.00 | NA | 0.00 | NA | 0 | ||
| Source: Compustat; Standard & Poor’s; company public filings. | |||||||
| aInvestment Services includes brokerage, asset management, investment banking, and trading. | |||||||
| bIndicates average over 1993-1996. | |||||||
| cIndicates average over 1992-1995. | |||||||
Exhibit 5
| Exhibit 5 Stock Price Data for Discount Brokers | |||||
| Ameritrade | |||||
| Date | Shares | Price | Dividend | Stock Split | |
| 31-Mar-97 | 13,153 | 15.625 | 1.000 | ||
| 30-Apr-97 | 13,153 | 12.500 | – | ||
| 30-May-97 | 13,153 | 14.000 | – | ||
| 30-Jun-97 | 14,518 | 15.750 | – | ||
| 31-Jul-97 | 14,518 | 15.375 | – | ||
| 29-Aug-97 | 14,518 | 18.813 | – | ||
| Charles Schwab | |||||
| Date | Shares | Price | Dividend | Stock Split | |
| 30-Sep-87 | 29,121 | 15.875 | – | ||
| 30-Oct-87 | 29,121 | 7.875 | – | ||
| 30-Nov-87 | 29,121 | 6.625 | – | ||
| 31-Dec-87 | 25,388 | 6.000 | – | ||
| 29-Jan-88 | 25,388 | 6.500 | – | ||
| 29-Feb-88 | 25,388 | 9.000 | – | ||
| 31-Mar-88 | 25,388 | 7.375 | – | ||
| 29-Apr-88 | 25,388 | 7.625 | – | ||
| 31-May-88 | 25,388 | 6.875 | – | ||
| 30-Jun-88 | 25,294 | 7.250 | – | ||
| 29-Jul-88 | 25,294 | 7.500 | – | ||
| 31-Aug-88 | 25,294 | 6.750 | – | ||
| 30-Sep-88 | 25,328 | 6.750 | – | ||
| 31-Oct-88 | 25,328 | 7.500 | – | ||
| 30-Nov-88 | 25,328 | 6.750 | – | ||
| 30-Dec-88 | 25,354 | 6.750 | – | ||
| 31-Jan-89 | 25,354 | 10.250 | – | ||
| 28-Feb-89 | 25,354 | 8.625 | – | ||
| 31-Mar-89 | 25,354 | 8.875 | – | ||
| 28-Apr-89 | 25,354 | 10.125 | – | ||
| 31-May-89 | 25,354 | 11.750 | 0.030 | ||
| 30-Jun-89 | 25,352 | 11.000 | – | ||
| 31-Jul-89 | 25,352 | 16.500 | 0.030 | ||
| 31-Aug-89 | 25,352 | 15.750 | – | ||
| 29-Sep-89 | 25,386 | 14.000 | – | ||
| 31-Oct-89 | 25,386 | 13.000 | 0.030 | ||
| 30-Nov-89 | 25,386 | 12.500 | – | ||
| 29-Dec-89 | 25,332 | 13.875 | – | ||
| 31-Jan-90 | 25,332 | 13.500 | 0.030 | ||
| 28-Feb-90 | 25,332 | 15.250 | – | ||
| 30-Mar-90 | 25,332 | 17.000 | – | ||
| 30-Apr-90 | 25,332 | 15.125 | 0.030 | ||
| 31-May-90 | 25,332 | 15.750 | – | ||
| 29-Jun-90 | 25,099 | 15.250 | – | ||
| 31-Jul-90 | 25,099 | 13.625 | 0.030 | ||
| 31-Aug-90 | 25,099 | 12.625 | – | ||
| 28-Sep-90 | 25,255 | 11.375 | – | ||
| 31-Oct-90 | 25,255 | 12.625 | 0.040 | ||
| 30-Nov-90 | 25,255 | 11.875 | – | ||
| 31-Dec-90 | 24,464 | 11.375 | – | ||
| 31-Jan-91 | 24,464 | 16.000 | 0.040 | ||
| 28-Feb-91 | 24,464 | 18.250 | – | ||
| 28-Mar-91 | 24,464 | 20.250 | – | ||
| 30-Apr-91 | 24,464 | 18.125 | 0.040 | ||
| 31-May-91 | 24,464 | 22.500 | – | ||
| 28-Jun-91 | 24,435 | 24.750 | – | ||
| 31-Jul-91 | 24,435 | 27.500 | 0.050 | ||
| 30-Aug-91 | 24,435 | 28.375 | – | ||
| 30-Sep-91 | 25,596 | 31.125 | – | ||
| 31-Oct-91 | 25,596 | 37.750 | 0.060 | ||
| 29-Nov-91 | 25,596 | 32.750 | – | ||
| 31-Dec-91 | 38,394 | 30.375 | – | 3 for 2 | |
| 31-Jan-92 | 38,394 | 31.875 | 0.040 | ||
| 28-Feb-92 | 38,394 | 33.250 | – | ||
| 31-Mar-92 | 38,479 | 34.625 | – | ||
| 30-Apr-92 | 38,479 | 28.500 | 0.060 | ||
| 29-May-92 | 38,479 | 28.875 | – | ||
| 30-Jun-92 | 38,626 | 23.500 | – | ||
| 31-Jul-92 | 38,626 | 24.625 | 0.060 | ||
| 31-Aug-92 | 38,626 | 22.500 | – | ||
| 30-Sep-92 | 38,149 | 18.000 | – | ||
| 30-Oct-92 | 38,149 | 20.250 | 0.060 | ||
| 30-Nov-92 | 38,149 | 24.875 | – | ||
| 31-Dec-92 | 37,741 | 26.125 | – | ||
| 29-Jan-93 | 37,741 | 30.250 | 0.060 | ||
| 26-Feb-93 | 37,741 | 32.375 | – | ||
| 31-Mar-93 | 37,741 | 36.500 | – | ||
| 30-Apr-93 | 37,741 | 32.750 | 0.075 | ||
| 28-May-93 | 37,741 | 35.250 | – | ||
| 30-Jun-93 | 56,612 | 28.500 | – | 3 for 2 | |
| 30-Jul-93 | 56,612 | 29.000 | 0.050 | ||
| 31-Aug-93 | 56,612 | 32.875 | – | ||
| 30-Sep-93 | 57,625 | 34.500 | – | ||
| 29-Oct-93 | 57,625 | 34.625 | 0.050 | ||
| 30-Nov-93 | 57,815 | 31.875 | – | ||
| 31-Dec-93 | 57,815 | 32.375 | – | ||
| 31-Jan-94 | 57,815 | 29.500 | 0.070 | ||
| 28-Feb-94 | 57,815 | 27.500 | – | ||
| 31-Mar-94 | 57,815 | 26.875 | – | ||
| 29-Apr-94 | 57,815 | 28.375 | 0.070 | ||
| 31-May-94 | 57,815 | 30.250 | – | ||
| 30-Jun-94 | 57,114 | 24.750 | – | ||
| 29-Jul-94 | 57,114 | 26.750 | 0.070 | ||
| 31-Aug-94 | 57,114 | 30.750 | – | ||
| 30-Sep-94 | 56,829 | 29.625 | – | ||
| 31-Oct-94 | 56,829 | 35.375 | 0.070 | ||
| 30-Nov-94 | 57,325 | 31.875 | – | ||
| 30-Dec-94 | 57,325 | 34.875 | – | ||
| 31-Jan-95 | 57,325 | 40.000 | 0.090 | ||
| 28-Feb-95 | 57,325 | 44.375 | – | ||
| 31-Mar-95 | 85,988 | 32.250 | – | 3 for 2 | |
| 28-Apr-95 | 85,988 | 34.250 | 0.060 | ||
| 31-May-95 | 85,988 | 35.000 | – | ||
| 30-Jun-95 | 85,896 | 43.875 | – | ||
| 31-Jul-95 | 85,896 | 46.125 | 0.080 | ||
| 31-Aug-95 | 87,061 | 46.625 | – | ||
| 29-Sep-95 | 174,122 | 29.000 | – | 2 for 1 | |
| 31-Oct-95 | 174,122 | 22.875 | 0.040 | ||
| 30-Nov-95 | 174,678 | 24.250 | – | ||
| 29-Dec-95 | 174,678 | 20.125 | – | ||
| 31-Jan-96 | 174,678 | 25.125 | 0.040 | ||
| 29-Feb-96 | 174,678 | 25.500 | – | ||
| 29-Mar-96 | 174,678 | 25.875 | – | ||
| 30-Apr-96 | 174,032 | 24.500 | 0.040 | ||
| 31-May-96 | 174,032 | 24.250 | – | ||
| 28-Jun-96 | 174,989 | 24.500 | – | ||
| 31-Jul-96 | 174,989 | 24.125 | 0.050 | ||
| 30-Aug-96 | 174,989 | 25.000 | – | ||
| 30-Sep-96 | 175,166 | 23.000 | – | ||
| 31-Oct-96 | 175,166 | 25.000 | 0.050 | ||
| 29-Nov-96 | 175,166 | 30.250 | – | ||
| 31-Dec-96 | 175,173 | 32.000 | – | ||
| 31-Jan-97 | 175,173 | 37.500 | – | ||
| 28-Feb-97 | 175,173 | 37.500 | 0.050 | ||
| 31-Mar-97 | 175,173 | 32.000 | – | ||
| 30-Apr-97 | 175,068 | 36.625 | – | ||
| 30-May-97 | 175,068 | 40.625 | 0.050 | ||
| 30-Jun-97 | 175,813 | 40.500 | – | ||
| 31-Jul-97 | 176,422 | 47.000 | – | ||
| 29-Aug-97 | 176,422 | 42.750 | 0.050 | ||
| E*Trade | |||||
| Date | Shares | Price | Dividend | Stock Split | |
| 30-Aug-96 | 29,393 | 10.500 | – | ||
| 30-Sep-96 | 29,539 | 13.188 | – | ||
| 31-Oct-96 | 29,539 | 11.125 | – | ||
| 29-Nov-96 | 29,539 | 10.938 | – | ||
| 31-Dec-96 | 29,545 | 11.500 | – | ||
| 31-Jan-97 | 29,545 | 17.625 | – | ||
| 28-Feb-97 | 29,545 | 24.000 | – | ||
| 31-Mar-97 | 30,440 | 18.000 | – | ||
| 30-Apr-97 | 30,440 | 15.000 | – | ||
| 30-May-97 | 30,440 | 17.625 | – | ||
| 30-Jun-97 | 30,958 | 19.625 | – | ||
| 31-Jul-97 | 30,958 | 30.500 | – | ||
| 29-Aug-97 | 30,958 | 32.125 | – | ||
| Quick & Reilly | |||||
| Date | Shares | Price | Dividend | Stock Split | |
| 31-Jan-84 | 6,318 | 17.625 | – | ||
| 29-Feb-84 | 6,318 | 15.000 | 0.050 | ||
| 30-Mar-84 | 6,318 | 14.875 | – | ||
| 30-Apr-84 | 6,318 | 17.125 | – | ||
| 31-May-84 | 6,318 | 17.375 | – | ||
| 29-Jun-84 | 6,318 | 18.000 | 0.050 | ||
| 31-Jul-84 | 6,318 | 14.750 | – | ||
| 31-Aug-84 | 6,318 | 18.000 | 0.050 | ||
| 28-Sep-84 | 6,318 | 17.000 | – | ||
| 31-Oct-84 | 6,318 | 17.875 | – | ||
| 30-Nov-84 | 6,318 | 15.250 | 0.050 | ||
| 31-Dec-84 | 6,318 | 15.500 | – | ||
| 31-Jan-85 | 6,318 | 23.375 | – | ||
| 28-Feb-85 | 6,318 | 23.750 | 0.110 | ||
| 29-Mar-85 | 6,318 | 23.125 | – | ||
| 30-Apr-85 | 6,318 | 20.625 | – | ||
| 31-May-85 | 6,318 | 22.625 | 0.060 | ||
| 28-Jun-85 | 6,318 | 24.000 | – | ||
| 31-Jul-85 | 6,318 | 24.125 | – | ||
| 30-Aug-85 | 6,318 | 22.875 | 0.060 | ||
| 30-Sep-85 | 6,318 | 20.125 | – | ||
| 31-Oct-85 | 6,318 | 22.250 | – | ||
| 29-Nov-85 | 6,318 | 25.500 | 0.060 | ||
| 31-Dec-85 | 6,318 | 32.500 | – | ||
| 31-Jan-86 | 6,318 | 36.375 | – | ||
| 28-Feb-86 | 6,318 | 39.125 | 0.170 | ||
| 31-Mar-86 | 6,318 | 39.000 | – | ||
| 30-Apr-86 | 6,318 | 30.375 | – | ||
| 30-May-86 | 11,149 | 33.375 | 0.070 | ||
| 30-Jun-86 | 11,149 | 35.500 | – | ||
| 31-Jul-86 | 11,149 | 29.000 | – | ||
| 29-Aug-86 | 11,149 | 28.750 | 0.070 | ||
| 30-Sep-86 | 11,149 | 23.875 | – | ||
| 31-Oct-86 | 11,149 | 32.125 | – | ||
| 28-Nov-86 | 11,149 | 29.500 | 0.070 | ||
| 31-Dec-86 | 11,149 | 26.750 | – | ||
| 30-Jan-87 | 11,149 | 36.125 | – | ||
| 27-Feb-87 | 11,149 | 36.875 | 0.200 | ||
| 31-Mar-87 | 11,149 | 36.000 | – | ||
| 30-Apr-87 | 16,724 | 21.375 | – | 3 for 2 | |
| 29-May-87 | 16,724 | 21.500 | 0.055 | ||
| 30-Jun-87 | 9,477 | 19.250 | – | ||
| 31-Jul-87 | 9,477 | 20.250 | – | ||
| 31-Aug-87 | 9,477 | 24.625 | 0.055 | ||
| 30-Sep-87 | 9,477 | 23.000 | – | ||
| 30-Oct-87 | 9,477 | 12.125 | – | ||
| 30-Nov-87 | 9,477 | 11.625 | 0.055 | ||
| 31-Dec-87 | 9,477 | 12.500 | – | ||
| 29-Jan-88 | 9,477 | 12.625 | – | ||
| 29-Feb-88 | 9,477 | 13.500 | 0.180 | ||
| 31-Mar-88 | 9,452 | 12.250 | – | ||
| 29-Apr-88 | 9,452 | 12.625 | – | ||
| 31-May-88 | 9,452 | 11.500 | 0.060 | ||
| 30-Jun-88 | 9,452 | 11.875 | – | ||
| 29-Jul-88 | 9,452 | 11.500 | – | ||
| 31-Aug-88 | 9,452 | 11.250 | 0.060 | ||
| 30-Sep-88 | 9,452 | 11.750 | – | ||
| 31-Oct-88 | 9,452 | 11.750 | – | ||
| 30-Nov-88 | 9,452 | 11.500 | 0.060 | ||
| 30-Dec-88 | 9,452 | 10.875 | – | ||
| 31-Jan-89 | 9,452 | 15.000 | – | ||
| 28-Feb-89 | 9,452 | 13.750 | 0.060 | ||
| 31-Mar-89 | 9,452 | 13.250 | – | ||
| 28-Apr-89 | 9,452 | 13.000 | – | ||
| 31-May-89 | 9,452 | 16.125 | 0.060 | ||
| 30-Jun-89 | 9,452 | 14.000 | – | ||
| 31-Jul-89 | 9,452 | 16.500 | – | ||
| 31-Aug-89 | 9,452 | 17.000 | 0.060 | ||
| 29-Sep-89 | 9,452 | 16.750 | – | ||
| 31-Oct-89 | 9,452 | 15.750 | – | ||
| 30-Nov-89 | 9,452 | 14.875 | 0.060 | ||
| 29-Dec-89 | 9,452 | 13.625 | – | ||
| 31-Jan-90 | 9,452 | 12.000 | – | ||
| 28-Feb-90 | 9,452 | 13.625 | 0.130 | ||
| 30-Mar-90 | 9,452 | 13.250 | – | ||
| 30-Apr-90 | 9,452 | 13.000 | – | ||
| 31-May-90 | 9,452 | 15.250 | 0.070 | ||
| 29-Jun-90 | 9,452 | 14.000 | – | ||
| 31-Jul-90 | 9,452 | 13.500 | – | ||
| 31-Aug-90 | 9,452 | 11.375 | 0.070 | ||
| 28-Sep-90 | 9,452 | 10.375 | – | ||
| 31-Oct-90 | 9,452 | 9.750 | – | ||
| 30-Nov-90 | 9,452 | 10.125 | 0.070 | ||
| 31-Dec-90 | 9,437 | 10.250 | – | ||
| 31-Jan-91 | 9,437 | 13.125 | – | ||
| 28-Feb-91 | 9,437 | 16.125 | 0.070 | ||
| 28-Mar-91 | 9,210 | 18.875 | – | ||
| 30-Apr-91 | 9,210 | 17.500 | – | ||
| 31-May-91 | 9,210 | 17.750 | 0.070 | ||
| 28-Jun-91 | 9,452 | 17.000 | – | ||
| 31-Jul-91 | 9,452 | 19.625 | – | ||
| 30-Aug-91 | 9,452 | 20.625 | 0.070 | ||
| 30-Sep-91 | 9,210 | 19.250 | – | ||
| 31-Oct-91 | 9,210 | 20.375 | – | ||
| 29-Nov-91 | 9,210 | 20.000 | 0.070 | ||
| 31-Dec-91 | 9,220 | 27.750 | – | ||
| 31-Jan-92 | 9,220 | 27.500 | – | ||
| 28-Feb-92 | 9,220 | 28.500 | 0.180 | ||
| 31-Mar-92 | 9,292 | 28.625 | – | ||
| 30-Apr-92 | 9,292 | 21.500 | – | ||
| 29-May-92 | 9,292 | 21.500 | 0.080 | ||
| 30-Jun-92 | 9,292 | 21.000 | – | ||
| 31-Jul-92 | 9,292 | 20.125 | – | ||
| 31-Aug-92 | 9,292 | 19.625 | 0.080 | ||
| 30-Sep-92 | 9,884 | 20.125 | – | ||
| 30-Oct-92 | 9,884 | 21.000 | – | ||
| 30-Nov-92 | 9,884 | 25.375 | 0.080 | ||
| 31-Dec-92 | 9,884 | 24.750 | – | ||
| 29-Jan-93 | 9,884 | 27.000 | – | ||
| 26-Feb-93 | 9,884 | 26.000 | 0.220 | ||
| 31-Mar-93 | 9,824 | 27.125 | – | ||
| 30-Apr-93 | 9,824 | 25.125 | – | ||
| 28-May-93 | 9,824 | 26.125 | 0.100 | ||
| 30-Jun-93 | 10,315 | 28.875 | 1.443 | ||
| 30-Jul-93 | 10,623 | 30.750 | – | ||
| 31-Aug-93 | 10,623 | 35.000 | 0.100 | ||
| 30-Sep-93 | 10,643 | 36.250 | – | ||
| 29-Oct-93 | 10,643 | 35.875 | – | ||
| 30-Nov-93 | 10,678 | 34.250 | 0.100 | ||
| 31-Dec-93 | 11,212 | 35.750 | 1.788 | ||
| 31-Jan-94 | 10,678 | 35.375 | – | ||
| 28-Feb-94 | 11,238 | 28.375 | 0.270 | ||
| 31-Mar-94 | 11,238 | 25.625 | – | ||
| 29-Apr-94 | 11,238 | 26.375 | – | ||
| 31-May-94 | 11,238 | 26.875 | 0.120 | ||
| 30-Jun-94 | 11,168 | 25.375 | – | ||
| 29-Jul-94 | 11,168 | 24.750 | – | ||
| 31-Aug-94 | 11,121 | 29.250 | 0.120 | ||
| 30-Sep-94 | 11,121 | 25.875 | – | ||
| 31-Oct-94 | 11,111 | 25.750 | – | ||
| 30-Nov-94 | 11,111 | 24.750 | 0.120 | ||
| 30-Dec-94 | 11,111 | 28.375 | – | ||
| 31-Jan-95 | 11,075 | 30.875 | – | ||
| 28-Feb-95 | 11,075 | 35.000 | 0.290 | ||
| 31-Mar-95 | 11,075 | 35.500 | – | ||
| 28-Apr-95 | 11,075 | 40.625 | – | ||
| 31-May-95 | 11,075 | 47.000 | – | ||
| 30-Jun-95 | 16,613 | 36.625 | 0.150 | 3 for 2 | |
| 31-Jul-95 | 16,613 | 38.500 | – | ||
| 31-Aug-95 | 16,613 | 37.375 | 0.100 | ||
| 29-Sep-95 | 16,613 | 45.875 | – | ||
| 31-Oct-95 | 24,920 | 23.750 | – | 3 for 2 | |
| 30-Nov-95 | 24,952 | 25.375 | 0.070 | ||
| 29-Dec-95 | 24,952 | 20.500 | – | ||
| 31-Jan-96 | 25,056 | 23.250 | – | ||
| 29-Feb-96 | 25,056 | 26.250 | 0.080 | ||
| 29-Mar-96 | 25,056 | 29.500 | – | ||
| 30-Apr-96 | 25,056 | 30.500 | – | ||
| 31-May-96 | 25,056 | 33.875 | 0.070 | ||
| 28-Jun-96 | 25,056 | 32.500 | – | ||
| 31-Jul-96 | 25,178 | 28.375 | – | ||
| 30-Aug-96 | 25,178 | 29.250 | 0.080 | ||
| 30-Sep-96 | 25,178 | 26.500 | – | ||
| 31-Oct-96 | 25,178 | 26.250 | – | ||
| 29-Nov-96 | 25,178 | 28.375 | 0.080 | ||
| 31-Dec-96 | 25,178 | 29.875 | – | ||
| 31-Jan-97 | 25,173 | 36.625 | – | ||
| 28-Feb-97 | 25,173 | 35.000 | 0.190 | ||
| 31-Mar-97 | 37,760 | 20.875 | – | 3 for 2 | |
| 30-Apr-97 | 37,760 | 22.125 | – | ||
| 30-May-97 | 37,760 | 23.000 | 0.060 | ||
| 30-Jun-97 | 38,606 | 23.250 | – | ||
| 31-Jul-97 | 38,664 | 26.250 | – | ||
| 29-Aug-97 | 38,664 | 34.250 | 0.060 | ||
| Waterhouse Investor Services | |||||
| Date | Shares | Price | Dividend | Stock Split | |
| 29-May-87 | 2,572 | 6.938 | – | ||
| 30-Jun-87 | 2,572 | 8.000 | – | ||
| 31-Jul-87 | 2,572 | 8.250 | – | ||
| 31-Aug-87 | 2,572 | 7.500 | – | ||
| 30-Sep-87 | 2,572 | 8.000 | – | ||
| 30-Oct-87 | 2,572 | 6.250 | – | ||
| 30-Nov-87 | 2,572 | 6.000 | – | ||
| 31-Dec-87 | 2,572 | 5.250 | – | ||
| 29-Jan-88 | 2,572 | 4.500 | – | ||
| 29-Feb-88 | 2,482 | 4.750 | – | ||
| 31-Mar-88 | 2,482 | 6.000 | – | ||
| 29-Apr-88 | 2,482 | 5.875 | – | ||
| 31-May-88 | 2,482 | 6.250 | – | ||
| 30-Jun-88 | 2,482 | 5.000 | – | ||
| 29-Jul-88 | 2,482 | 3.500 | – | ||
| 31-Aug-88 | 2,482 | 3.250 | – | ||
| 30-Sep-88 | 2,482 | 4.000 | – | ||
| 31-Oct-88 | 2,482 | 3.375 | – | ||
| 30-Nov-88 | 2,482 | 3.500 | – | ||
| 30-Dec-88 | 2,482 | 2.750 | – | ||
| 31-Jan-89 | 2,482 | 3.750 | – | ||
| 28-Feb-89 | 2,472 | 3.750 | – | ||
| 31-Mar-89 | 2,472 | 4.750 | – | ||
| 28-Apr-89 | 2,472 | 4.250 | – | ||
| 31-May-89 | 2,420 | 5.000 | – | ||
| 30-Jun-89 | 2,420 | 6.000 | – | ||
| 31-Jul-89 | 2,420 | 6.000 | – | ||
| 31-Aug-89 | 2,419 | 5.750 | 0.120 | ||
| 29-Sep-89 | 2,419 | 5.625 | – | ||
| 31-Oct-89 | 2,419 | 5.375 | – | ||
| 30-Nov-89 | 2,417 | 5.000 | – | ||
| 29-Dec-89 | 2,417 | 4.500 | – | ||
| 31-Jan-90 | 2,417 | 4.375 | – | ||
| 28-Feb-90 | 2,420 | 3.750 | – | ||
| 30-Mar-90 | 2,420 | 4.250 | – | ||
| 30-Apr-90 | 2,420 | 4.375 | – | ||
| 31-May-90 | 2,572 | 4.250 | – | ||
| 29-Jun-90 | 2,572 | 4.750 | – | ||
| 31-Jul-90 | 2,572 | 4.625 | – | ||
| 31-Aug-90 | 2,377 | 4.375 | 0.150 | ||
| 28-Sep-90 | 2,377 | 4.250 | – | ||
| 31-Oct-90 | 2,377 | 4.000 | – | ||
| 30-Nov-90 | 2,370 | 3.750 | – | ||
| 31-Dec-90 | 2,370 | 3.625 | – | ||
| 31-Jan-91 | 2,370 | 3.750 | – | ||
| 28-Feb-91 | 2,320 | 4.500 | – | ||
| 28-Mar-91 | 2,320 | 6.125 | – | ||
| 30-Apr-91 | 2,320 | 7.000 | – | ||
| 31-May-91 | 2,320 | 8.250 | – | ||
| 28-Jun-91 | 2,900 | 8.000 | – | 5 for 4 | |
| 31-Jul-91 | 2,900 | 10.375 | – | ||
| 30-Aug-91 | 2,943 | 10.750 | 0.160 | ||
| 30-Sep-91 | 2,943 | 14.250 | – | ||
| 31-Oct-91 | 2,943 | 14.000 | – | ||
| 29-Nov-91 | 2,943 | 15.500 | – | ||
| 31-Dec-91 | 2,943 | 27.500 | – | ||
| 31-Jan-92 | 2,943 | 26.500 | – | ||
| 28-Feb-92 | 4,415 | 21.750 | – | 3 for 2 | |
| 31-Mar-92 | 4,466 | 25.375 | – | ||
| 30-Apr-92 | 4,466 | 20.625 | – | ||
| 29-May-92 | 4,466 | 21.750 | – | ||
| 30-Jun-92 | 4,466 | 17.125 | – | ||
| 31-Jul-92 | 4,466 | 17.625 | – | ||
| 31-Aug-92 | 4,466 | 13.750 | 0.200 | ||
| 30-Sep-92 | 4,847 | 14.375 | – | ||
| 30-Oct-92 | 4,847 | 15.625 | – | ||
| 30-Nov-92 | 4,847 | 20.750 | – | ||
| 31-Dec-92 | 4,847 | 20.500 | – | ||
| 29-Jan-93 | 4,847 | 25.250 | – | ||
| 26-Feb-93 | 4,847 | 24.375 | – | ||
| 31-Mar-93 | 6,071 | 20.500 | – | 5 for 4 | |
| 30-Apr-93 | 6,071 | 18.500 | – | ||
| 28-May-93 | 6,071 | 27.250 | – | ||
| 30-Jun-93 | 6,072 | 33.500 | – | ||
| 30-Jul-93 | 6,072 | 33.000 | – | ||
| 31-Aug-93 | 6,072 | 42.625 | 0.250 | ||
| 30-Sep-93 | 6,072 | 50.125 | – | ||
| 29-Oct-93 | 6,072 | 47.250 | – | ||
| 30-Nov-93 | 9,108 | 25.750 | – | 3 for 2 | |
| 31-Dec-93 | 9,150 | 21.250 | – | ||
| 31-Jan-94 | 9,150 | 21.250 | – | ||
| 28-Feb-94 | 9,150 | 20.500 | – | ||
| 31-Mar-94 | 9,150 | 17.625 | – | ||
| 29-Apr-94 | 9,150 | 16.000 | – | ||
| 31-May-94 | 9,150 | 15.250 | – | ||
| 30-Jun-94 | 9,150 | 13.375 | – | ||
| 29-Jul-94 | 9,150 | 13.000 | – | ||
| 31-Aug-94 | 9,150 | 17.000 | 0.200 | ||
| 30-Sep-94 | 9,150 | 14.125 | – | ||
| 31-Oct-94 | 9,150 | 16.125 | – | ||
| 30-Nov-94 | 9,150 | 14.250 | – | ||
| 30-Dec-94 | 9,154 | 12.250 | – | ||
| 31-Jan-95 | 9,154 | 14.500 | – | ||
| 28-Feb-95 | 9,154 | 17.375 | – | ||
| 31-Mar-95 | 9,154 | 16.125 | – | ||
| 28-Apr-95 | 9,154 | 15.625 | – | ||
| 31-May-95 | 9,154 | 17.500 | – | ||
| 30-Jun-95 | 9,154 | 23.000 | – | ||
| 31-Jul-95 | 9,154 | 27.625 | – | ||
| 31-Aug-95 | 9,154 | 28.625 | 0.250 | ||
| 29-Sep-95 | 11,442 | 25.500 | – | 5 for 4 | |
| 31-Oct-95 | 11,442 | 19.750 | – | ||
| 30-Nov-95 | 11,442 | 19.750 | – | ||
| 29-Dec-95 | 11,452 | 24.750 | – | ||
| 31-Jan-96 | 11,452 | 23.625 | – | ||
| 29-Feb-96 | 11,452 | 24.625 | – | ||
| 29-Mar-96 | 11,452 | 33.375 | – | ||
| 30-Apr-96 | 11,452 | 36.250 | – | ||
| 31-May-96 | 11,458 | 36.625 | – | ||
| 28-Jun-96 | 11,458 | 37.125 | – | ||
| 31-Jul-96 | 11,501 | 37.625 | – | ||
| 30-Aug-96 | 11,501 | 37.375 | 0.220 | ||
| 30-Sep-96 | 11,501 | 37.875 | – | ||
| Source: Center for Research on Security Prices, University of Chicago. | |||||
Exhibit 6
| Exhibit 6 Stock Return Data for Investment Service firms, Internet Firms, and the Aggregate Stock Market | |||||||||||||
| Date | A G Edwards | Bear Stearns |
Lehman Bros. |
Meckler-media | Merrill Lynch |
Morgan Stanley Dean Witter |
Netscape | Paine Webber |
Raymond James |
Yahoo! | VW NYSE, AMEX, and NASDAQ |
EW NYSE, AMEX, and NASDAQ |
Treasury Bill (rf) |
| 31-Jan-84 | 0.026040 | -0.013280 | -0.042860 | 0.040000 | -0.012910 | 0.005760 | |||||||
| 29-Feb-84 | -0.111680 | -0.167330 | -0.175370 | -0.102560 | -0.039170 | -0.053810 | |||||||
| 30-Mar-84 | -0.042290 | -0.019140 | 0.073300 | -0.050000 | 0.013450 | 0.007100 | |||||||
| 30-Apr-84 | 0.012050 | -0.011710 | 0.080510 | -0.067670 | 0.002730 | -0.019420 | |||||||
| 31-May-84 | -0.017860 | -0.044780 | -0.113730 | -0.072580 | -0.052350 | -0.050770 | |||||||
| 29-Jun-84 | 0.100610 | 0.119790 | 0.084960 | -0.043480 | 0.023590 | 0.013800 | |||||||
| 31-Jul-84 | 0.016670 | -0.076280 | -0.090160 | 0.018180 | -0.020350 | -0.047450 | |||||||
| 31-Aug-84 | 0.178140 | 0.304570 | 0.189190 | 0.214290 | 0.112570 | 0.089620 | |||||||
| 28-Sep-84 | -0.032710 | -0.077820 | -0.105300 | -0.029410 | 0.000390 | 0.000270 | |||||||
| 31-Oct-84 | 0.024150 | 0.023630 | 0.029790 | 0.015150 | 0.000130 | -0.020890 | |||||||
| 30-Nov-84 | -0.066040 | -0.091290 | -0.041320 | -0.179100 | -0.010620 | -0.031410 | |||||||
| 31-Dec-84 | -0.017170 | -0.013700 | -0.046550 | -0.054550 | 0.023790 | 0.005050 | |||||||
| 31-Jan-85 | 0.331610 | 0.277780 | 0.431820 | 0.430770 | 0.085730 | 0.122760 | |||||||
| 28-Feb-85 | -0.007780 | -0.023190 | -0.022220 | 0.027030 | 0.017000 | 0.047140 | |||||||
| 29-Mar-85 | -0.036860 | -0.085820 | 0.026620 | 0.013160 | -0.001930 | -0.008530 | |||||||
| 30-Apr-85 | -0.094260 | -0.034290 | -0.123810 | -0.025970 | -0.002180 | -0.011290 | |||||||
| 31-May-85 | 0.085970 | 0.089360 | 0.065220 | 0.013330 | 0.055870 | 0.022930 | |||||||
| 28-Jun-85 | 0.102500 | 0.011720 | -0.040140 | 0.039470 | 0.017190 | 0.003470 | |||||||
| 31-Jul-85 | -0.064640 | 0.040930 | -0.092530 | 0.017720 | -0.000540 | 0.019510 | |||||||
| 30-Aug-85 | -0.036590 | -0.052240 | -0.038430 | 0.025000 | -0.004800 | -0.003410 | |||||||
| 30-Sep-85 | -0.132490 | -0.141730 | -0.049180 | -0.048780 | -0.039650 | -0.056140 | |||||||
| 31-Oct-85 | 0.088240 | 0.100920 | 0.008620 | 0.000000 | 0.044570 | 0.018960 | |||||||
| 29-Nov-85 | 0.099100 | -0.103450 | 0.127500 | 0.197440 | 0.256410 | 0.069270 | 0.053270 | ||||||
| 31-Dec-85 | 0.141800 | 0.193590 | 0.022300 | 0.003580 | 0.015920 | 0.043060 | 0.029130 | ||||||
| 31-Jan-86 | 0.039710 | 0.156760 | 0.152730 | 0.107140 | 0.288890 | 0.009860 | 0.043400 | ||||||
| 28-Feb-86 | 0.149310 | 0.130840 | 0.036590 | 0.068390 | 0.103450 | 0.072840 | 0.062360 | ||||||
| 31-Mar-86 | 0.083990 | 0.128720 | 0.012230 | 0.036360 | 0.171880 | 0.053880 | 0.047720 | ||||||
| 30-Apr-86 | -0.086830 | 0.065640 | -0.102720 | 0.051150 | -0.137430 | -0.100000 | -0.008060 | 0.015840 | |||||
| 30-May-86 | 0.026070 | 0.003620 | -0.008080 | 0.013420 | 0.051530 | -0.007410 | 0.050810 | 0.036630 | |||||
| 30-Jun-86 | -0.066370 | -0.168520 | -0.054610 | -0.062910 | -0.116500 | -0.040600 | 0.014300 | 0.008960 | |||||
| 31-Jul-86 | -0.067630 | -0.141920 | -0.039710 | -0.070670 | -0.010990 | -0.187500 | -0.059690 | -0.073610 | |||||
| 29-Aug-86 | 0.104660 | 0.160310 | 0.145110 | 0.149050 | 0.175930 | 0.038460 | 0.066390 | 0.022110 | |||||
| 30-Sep-86 | -0.094340 | -0.145530 | -0.052810 | -0.119400 | -0.015590 | -0.092590 | -0.079140 | -0.060490 | |||||
| 31-Oct-86 | 0.151040 | 0.217050 | 0.195120 | 0.160830 | 0.172690 | 0.081630 | 0.049440 | 0.024620 | |||||
| 28-Nov-86 | -0.022620 | -0.057320 | -0.074050 | -0.030890 | -0.075210 | -0.056600 | 0.015170 | -0.006280 | |||||
| 31-Dec-86 | -0.040740 | -0.102160 | -0.075950 | -0.129190 | -0.063200 | -0.026800 | -0.026540 | -0.034530 | |||||
| 30-Jan-87 | 0.334950 | 0.318180 | 0.198630 | 0.112910 | 0.178570 | 0.319590 | 0.128370 | 0.116820 | |||||
| 27-Feb-87 | 0.000000 | -0.022990 | -0.015430 | -0.048610 | -0.033540 | 0.289060 | 0.047630 | 0.074950 | |||||
| 31-Mar-87 | 0.044950 | -0.024650 | -0.002920 | 0.036500 | -0.003500 | 0.261940 | 0.023240 | 0.033090 | |||||
| 30-Apr-87 | -0.122380 | -0.121020 | -0.152050 | 0.005280 | -0.084210 | -0.116400 | -0.017130 | -0.019610 | |||||
| 29-May-87 | -0.023900 | -0.028990 | -0.041380 | 0.020320 | -0.061150 | -0.101800 | 0.005220 | 0.000710 | |||||
| 30-Jun-87 | -0.104650 | 0.022090 | 0.010870 | -0.003440 | 0.020490 | -0.031200 | 0.043830 | 0.022010 | |||||
| 31-Jul-87 | 0.073390 | -0.007350 | 0.100360 | 0.023490 | 0.052210 | -0.062070 | 0.044050 | 0.034700 | |||||
| 31-Aug-87 | 0.027180 | 0.103700 | 0.032570 | 0.069370 | 0.023050 | 0.169120 | 0.037230 | 0.015590 | |||||
| 30-Sep-87 | -0.071130 | 0.080270 | -0.031750 | 0.023730 | -0.029960 | -0.142640 | -0.020740 | -0.015510 | |||||
| 30-Oct-87 | -0.337840 | -0.400000 | -0.357380 | -0.337560 | -0.474900 | -0.352940 | -0.224870 | -0.270850 | |||||
| 30-Nov-87 | -0.174420 | -0.145830 | -0.153060 | -0.163930 | -0.021760 | -0.113640 | -0.072900 | -0.052300 | |||||
| 31-Dec-87 | 0.033330 | 0.023900 | 0.091460 | 0.148460 | -0.128790 | -0.038460 | 0.070410 | 0.027940 | |||||
| 29-Jan-88 | 0.080650 | 0.144580 | 0.072630 | -0.019510 | 0.113040 | 0.137600 | 0.045340 | 0.078110 | |||||
| 29-Feb-88 | 0.062390 | 0.157890 | 0.062500 | 0.168660 | 0.109690 | -0.035290 | 0.051610 | 0.062010 | |||||
| 31-Mar-88 | -0.035460 | -0.054550 | -0.064360 | 0.055560 | -0.078010 | 0.089270 | -0.017060 | 0.034370 | |||||
| 29-Apr-88 | 0.029410 | 0.019420 | 0.000000 | 0.106880 | -0.038460 | -0.067420 | 0.011000 | 0.015250 | |||||
| 31-May-88 | -0.042860 | -0.085710 | 0.031750 | -0.086240 | 0.032320 | -0.048190 | 0.000940 | -0.017020 | |||||
| 30-Jun-88 | 0.159400 | 0.093750 | 0.113990 | 0.275100 | 0.070310 | -0.008610 | 0.051390 | 0.048480 | |||||
| 29-Jul-88 | -0.006490 | -0.067310 | 0.013950 | 0.004720 | -0.036500 | 0.025640 | -0.007180 | 0.000550 | |||||
| 31-Aug-88 | -0.039220 | -0.041240 | -0.050460 | -0.015720 | 0.038180 | -0.050000 | -0.027940 | -0.023710 | |||||
| 30-Sep-88 | 0.084080 | 0.028670 | 0.039020 | -0.003190 | 0.036760 | 0.017370 | 0.037280 | 0.018700 | |||||
| 31-Oct-88 | -0.006330 | 0.084210 | 0.051640 | 0.051280 | -0.028370 | 0.157630 | 0.017650 | -0.011780 | |||||
| 30-Nov-88 | -0.057320 | 0.029130 | -0.049550 | -0.036700 | -0.065400 | -0.069770 | -0.016400 | -0.036700 | |||||
| 30-Dec-88 | 0.042970 | -0.038100 | -0.090050 | 0.053970 | 0.015750 | 0.105000 | 0.020800 | 0.019540 | |||||
| 31-Jan-89 | 0.169930 | 0.178220 | 0.270830 | 0.078310 | 0.116280 | 0.193180 | 0.065940 | 0.063130 | |||||
| 28-Feb-89 | -0.044690 | 0.001010 | -0.037190 | 0.032400 | 0.028060 | 0.051430 | -0.016360 | 0.002790 | |||||
| 31-Mar-89 | -0.038830 | 0.025420 | -0.047210 | 0.006110 | -0.047620 | -0.009090 | 0.021550 | 0.017030 | |||||
| 28-Apr-89 | -0.006130 | -0.041320 | 0.040540 | -0.055060 | 0.014290 | 0.018350 | 0.048530 | 0.030680 | |||||
| 31-May-89 | 0.154320 | 0.068710 | 0.060610 | 0.137630 | 0.070700 | 0.090090 | 0.039650 | 0.027370 | |||||
| 30-Jun-89 | -0.003420 | 0.034190 | -0.061730 | -0.017010 | -0.026490 | 0.069420 | -0.004980 | -0.008330 | |||||
| 31-Jul-89 | 0.178380 | 0.107440 | 0.232460 | 0.110000 | 0.258500 | 0.147290 | 0.077720 | 0.031610 | |||||
| 31-Aug-89 | 0.087160 | 0.034850 | -0.039430 | 0.062610 | 0.016430 | -0.013510 | 0.022280 | 0.019290 | |||||
| 29-Sep-89 | 0.008270 | -0.083970 | -0.108210 | -0.063830 | -0.160430 | 0.009590 | -0.001750 | 0.004470 | |||||
| 31-Oct-89 | -0.148150 | -0.075000 | -0.025100 | -0.069580 | -0.121020 | -0.122450 | -0.029380 | -0.050950 | |||||
| 30-Nov-89 | 0.103260 | -0.034950 | -0.086580 | 0.050940 | -0.014200 | 0.015500 | 0.017850 | -0.008220 | |||||
| 29-Dec-89 | -0.096750 | 0.009430 | -0.004740 | -0.071810 | 0.000000 | -0.061070 | 0.018280 | -0.012170 | |||||
| 31-Jan-90 | -0.115380 | -0.028040 | -0.133330 | -0.077370 | -0.037040 | -0.012360 | -0.070050 | -0.045810 | |||||
| 28-Feb-90 | 0.055900 | 0.060770 | 0.000000 | 0.029540 | 0.038770 | 0.148760 | 0.014980 | 0.015750 | |||||
| 30-Mar-90 | 0.137410 | -0.038460 | -0.033330 | 0.008200 | 0.044780 | 0.075400 | 0.024150 | 0.022040 | |||||
| 30-Apr-90 | -0.104170 | -0.020000 | -0.034480 | 0.028460 | -0.042860 | -0.013420 | -0.028160 | -0.026720 | |||||
| 31-May-90 | 0.203490 | 0.179290 | 0.138550 | 0.129220 | 0.119700 | 0.118910 | 0.088870 | 0.046650 | |||||
| 29-Jun-90 | -0.007920 | -0.009170 | -0.047620 | 0.024650 | 0.013420 | -0.036590 | -0.004300 | 0.005380 | |||||
| 31-Jul-90 | -0.058820 | -0.083330 | 0.061110 | -0.163230 | -0.066230 | 0.000000 | -0.009380 | -0.027290 | |||||
| 31-Aug-90 | -0.081460 | -0.097780 | -0.132280 | -0.068180 | -0.113190 | -0.101270 | -0.091730 | -0.109790 | |||||
| 28-Sep-90 | -0.268570 | -0.142860 | -0.091460 | -0.121950 | -0.096770 | -0.116340 | -0.053870 | -0.080490 | |||||
| 31-Oct-90 | 0.046880 | -0.097220 | -0.046980 | -0.012630 | -0.151790 | -0.048000 | -0.012420 | -0.056330 | |||||
| 30-Nov-90 | 0.119400 | 0.124920 | 0.107140 | 0.092780 | 0.126740 | 0.084030 | 0.065980 | 0.036650 | |||||
| 31-Dec-90 | 0.095730 | 0.125000 | 0.070970 | 0.025940 | 0.037740 | 0.144500 | 0.029540 | -0.003870 | |||||
| 31-Jan-91 | 0.202450 | 0.135800 | 0.186750 | 0.101150 | 0.054550 | 0.074830 | 0.049040 | 0.085250 | |||||
| 28-Feb-91 | 0.168370 | 0.142610 | 0.172590 | 0.184870 | 0.319310 | 0.219240 | 0.075690 | 0.133650 | |||||
| 28-Mar-91 | 0.136940 | 0.125000 | 0.218340 | 0.177300 | 0.197370 | 0.270830 | 0.028780 | 0.077820 | |||||
| 30-Apr-91 | 0.019310 | 0.034190 | 0.089610 | -0.015060 | 0.054950 | 0.057380 | 0.003350 | 0.031020 | |||||
| 31-May-91 | 0.075760 | 0.094630 | 0.086090 | 0.087560 | -0.041460 | 0.063950 | 0.040590 | 0.030340 | |||||
| 28-Jun-91 | -0.099720 | -0.128000 | -0.064020 | -0.103110 | -0.142080 | -0.041090 | -0.044240 | -0.034500 | |||||
| 31-Jul-91 | 0.198820 | 0.110090 | 0.081430 | 0.161200 | 0.095540 | 0.034290 | 0.046830 | 0.034920 | |||||
| 30-Aug-91 | 0.025220 | -0.014880 | 0.018180 | 0.029970 | 0.081630 | 0.038670 | 0.026910 | 0.028570 | |||||
| 30-Sep-91 | 0.202900 | 0.016950 | 0.148810 | 0.063490 | 0.118920 | 0.114260 | -0.011060 | 0.008670 | |||||
| 31-Oct-91 | 0.076310 | 0.058330 | 0.072540 | 0.081290 | 0.202900 | 0.105260 | 0.017720 | 0.023860 | |||||
| 29-Nov-91 | -0.126870 | -0.039760 | -0.067630 | -0.016170 | -0.152610 | -0.125540 | -0.037270 | -0.025390 | |||||
| 31-Dec-91 | 0.299660 | 0.182610 | 0.231770 | 0.197180 | 0.335070 | 0.217820 | 0.107040 | 0.036450 | |||||
| 31-Jan-92 | -0.056110 | 0.066180 | -0.031710 | -0.110040 | -0.016040 | 0.165530 | -0.001650 | 0.149480 | 0.32% | ||||
| 28-Feb-92 | -0.066430 | 0.080000 | -0.019650 | -0.008850 | 0.080430 | -0.003500 | 0.013290 | 0.052010 | 0.32% | ||||
| 31-Mar-92 | -0.088760 | -0.077420 | -0.015660 | -0.013390 | -0.045450 | 0.128840 | -0.023680 | -0.014120 | 0.34% | ||||
| 30-Apr-92 | -0.163220 | -0.006990 | -0.109090 | -0.110860 | -0.142860 | -0.135510 | 0.013850 | -0.032890 | 0.33% | ||||
| 29-May-92 | 0.098770 | 0.006690 | -0.004080 | 0.050690 | 0.049140 | -0.086490 | 0.006520 | 0.005500 | 0.30% | ||||
| 30-Jun-92 | -0.078430 | -0.022220 | 0.041240 | -0.024330 | 0.023670 | -0.014910 | -0.019240 | -0.039700 | 0.31% | ||||
| 31-Jul-92 | -0.006130 | -0.045450 | 0.019800 | 0.097260 | 0.069360 | 0.006020 | 0.039930 | 0.027280 | 0.30% | ||||
| 31-Aug-92 | 0.043460 | -0.014290 | -0.030580 | -0.075180 | -0.135350 | -0.071860 | -0.020760 | -0.024440 | 0.26% | ||||
| 30-Sep-92 | -0.071430 | 0.016260 | 0.020150 | -0.051850 | -0.106920 | -0.113030 | 0.012420 | 0.011930 | 0.26% | ||||
| 30-Oct-92 | 0.115380 | 0.024000 | 0.093830 | 0.031250 | 0.140850 | 0.116790 | 0.010900 | 0.016320 | 0.22% | ||||
| 30-Nov-92 | 0.166670 | 0.100390 | 0.095710 | 0.075560 | 0.197280 | 0.209150 | 0.040190 | 0.067730 | 0.25% | ||||
| 31-Dec-92 | -0.063840 | 0.045110 | -0.014490 | 0.051890 | 0.010360 | -0.032430 | 0.017540 | 0.035650 | 0.28% | ||||
| 29-Jan-93 | 0.089950 | -0.014390 | 0.098740 | 0.015700 | 0.035900 | 0.137650 | 0.012330 | 0.066740 | 0.26% | ||||
| 26-Feb-93 | -0.019420 | -0.005840 | 0.046650 | 0.022080 | -0.054650 | -0.137930 | 0.005450 | -0.007910 | 0.24% | ||||
| 31-Mar-93 | 0.080200 | 0.081480 | 0.045870 | 0.110500 | 0.089470 | 0.043660 | 0.025010 | 0.030880 | 0.25% | ||||
| 30-Apr-93 | -0.050690 | 0.089040 | -0.010530 | -0.064450 | -0.072460 | 0.005490 | -0.025510 | -0.012760 | 0.24% | ||||
| 28-May-93 | -0.052430 | 0.133330 | 0.079430 | 0.102300 | 0.136460 | 0.038250 | 0.029420 | 0.037950 | 0.24% | ||||
| 30-Jun-93 | 0.051550 | 0.050280 | 0.069310 | 0.051440 | 0.073730 | 0.003370 | 0.005130 | 0.011970 | 0.25% | ||||
| 30-Jul-93 | 0.063730 | 0.026600 | 0.074070 | 0.019890 | 0.034330 | -0.057890 | -0.000760 | 0.014100 | 0.25% | ||||
| 31-Aug-93 | 0.010140 | 0.039900 | 0.118970 | 0.179360 | 0.067220 | 0.154410 | 0.039340 | 0.040400 | 0.26% | ||||
| 30-Sep-93 | 0.082570 | 0.042110 | 0.010310 | 0.049770 | 0.019530 | 0.087380 | 0.000610 | 0.025790 | 0.25% | ||||
| 29-Oct-93 | 0.046610 | -0.111110 | -0.007400 | -0.096260 | -0.099620 | -0.035710 | 0.018040 | 0.040090 | 0.24% | ||||
| 30-Nov-93 | -0.032390 | 0.018180 | -0.063230 | -0.084010 | -0.088510 | -0.027780 | -0.017350 | -0.024370 | 0.25% | ||||
| 31-Dec-93 | -0.032970 | -0.016850 | -0.074380 | -0.013940 | 0.014080 | -0.050000 | 0.019450 | 0.016120 | 0.26% | ||||
| 31-Jan-94 | 0.016300 | 0.114290 | 0.073210 | 0.121910 | 0.097220 | 0.064960 | 0.031330 | 0.048920 | 0.25% | ||||
| 28-Feb-94 | -0.048130 | -0.106670 | -0.094710 | -0.156850 | -0.097050 | -0.070920 | -0.024090 | -0.009490 | 0.25% | ||||
| 31-Mar-94 | -0.190340 | -0.098270 | -0.045050 | -0.083080 | -0.039400 | -0.047010 | -0.048550 | -0.045740 | -0.046020 | 0.28% | |||
| 29-Apr-94 | -0.013990 | 0.083330 | 0.000000 | -0.010070 | -0.037110 | -0.007410 | -0.040320 | 0.009830 | -0.010820 | 0.30% | |||
| 31-May-94 | 0.071770 | 0.019820 | 0.905660 | 0.063860 | -0.025560 | -0.007760 | -0.003030 | 0.009500 | -0.000270 | 0.32% | |||
| 30-Jun-94 | -0.080000 | -0.165640 | -0.166670 | -0.128710 | -0.102560 | -0.048120 | -0.053030 | -0.016950 | -0.027380 | -0.026570 | 0.35% | ||
| 29-Jul-94 | 0.014490 | -0.051470 | 0.050000 | -0.011360 | 0.046430 | 0.065930 | 0.032000 | -0.068970 | 0.030410 | 0.015470 | 0.34% | ||
| 31-Aug-94 | 0.150000 | 0.141090 | 0.039680 | -0.275860 | 0.115490 | 0.155460 | 0.015190 | 0.185190 | 0.042830 | 0.036790 | 0.36% | ||
| 30-Sep-94 | -0.086210 | -0.123290 | -0.092310 | -0.031750 | -0.147690 | -0.109320 | -0.115380 | -0.026250 | -0.018650 | 0.004500 | 0.38% | ||
| 31-Oct-94 | 0.013700 | 0.015630 | 0.050850 | -0.311480 | 0.143830 | 0.052310 | 0.060870 | -0.032260 | 0.014870 | -0.002400 | 0.39% | ||
| 30-Nov-94 | -0.060000 | -0.029230 | -0.037100 | -0.071430 | -0.034920 | -0.091010 | -0.098690 | -0.041670 | -0.037070 | -0.040570 | 0.42% | ||
| 30-Dec-94 | 0.043480 | -0.016000 | -0.008400 | 0.410260 | -0.059210 | -0.002110 | 0.100920 | -0.026090 | 0.012750 | -0.012860 | 0.46% | ||
| 31-Jan-95 | 0.020830 | 0.081300 | 0.152540 | -0.181820 | 0.030910 | 0.019070 | 0.000000 | 0.095710 | 0.020550 | 0.027710 | 0.46% | ||
| 28-Feb-95 | 0.224490 | 0.136840 | 0.069120 | 0.155560 | 0.119450 | 0.120580 | 0.166330 | 0.163930 | 0.039620 | 0.027990 | 0.49% | ||
| 31-Mar-95 | -0.016000 | -0.013330 | -0.006900 | 0.730770 | 0.036590 | 0.004750 | -0.071940 | -0.023100 | 0.026970 | 0.018740 | 0.48% | ||
| 28-Apr-95 | 0.039770 | 0.114860 | 0.083330 | 0.566670 | 0.070590 | 0.031540 | 0.062020 | 0.014490 | 0.024880 | 0.025980 | 0.47% | ||
| 31-May-95 | -0.010930 | 0.038180 | 0.015380 | 0.517730 | 0.038680 | 0.095320 | 0.160290 | 0.050000 | 0.034160 | 0.020500 | 0.48% | ||
| 30-Jun-95 | 0.000660 | 0.055560 | 0.107590 | 0.411210 | 0.117020 | 0.077180 | -0.044300 | 0.059320 | 0.030840 | 0.048690 | 0.47% | ||
| 31-Jul-95 | 0.088890 | 0.035090 | 0.017140 | -0.006620 | 0.057140 | 0.023720 | 0.086090 | 0.122580 | 0.040670 | 0.055180 | 0.45% | ||
| 31-Aug-95 | -0.005100 | -0.061020 | 0.064040 | 0.126670 | 0.042970 | 0.038860 | -0.055120 | 0.011490 | 0.009340 | 0.030380 | 0.45% | ||
| 29-Sep-95 | 0.098050 | 0.042420 | -0.015870 | -0.112430 | 0.084600 | 0.116550 | 0.262630 | 0.025970 | -0.007270 | 0.036390 | 0.025990 | 0.44% | |
| 31-Oct-95 | -0.042250 | -0.075580 | -0.064520 | -0.373330 | -0.112000 | -0.099790 | 0.408000 | 0.120250 | -0.011490 | -0.011150 | -0.040580 | 0.44% | |
| 30-Nov-95 | 0.065100 | 0.101890 | 0.042530 | 0.510640 | 0.004680 | -0.008620 | 0.571020 | 0.011070 | 0.052330 | 0.042970 | 0.017200 | 0.45% | |
| 29-Dec-95 | -0.115740 | -0.086210 | -0.060770 | -0.098590 | -0.081080 | -0.065220 | 0.005420 | -0.101120 | -0.056570 | 0.015400 | 0.009780 | 0.44% | |
| 31-Jan-96 | 0.052360 | 0.157230 | 0.205880 | -0.185550 | 0.120290 | 0.185740 | 0.181650 | 0.037500 | 0.035290 | 0.028090 | 0.033290 | 0.41% | |
| 29-Feb-96 | -0.034830 | 0.060870 | -0.032200 | -0.155880 | 0.013190 | -0.015750 | -0.379000 | -0.036390 | 0.005680 | 0.016050 | 0.031540 | 0.41% | |
| 29-Mar-96 | 0.032370 | 0.020620 | 0.080810 | 0.090910 | 0.054230 | 0.109330 | -0.186270 | 0.106920 | 0.021240 | 0.011200 | 0.024120 | 0.41% | |
| 30-Apr-96 | -0.055280 | 0.015150 | -0.051400 | 0.333330 | -0.006170 | -0.030290 | 0.469880 | -0.051140 | 0.005560 | 0.025130 | 0.057330 | 0.42% | |
| 31-May-96 | 0.090430 | 0.014180 | -0.032510 | 0.156250 | 0.077430 | -0.014930 | 0.115780 | 0.053650 | 0.005520 | -0.058820 | 0.026720 | 0.061050 | 0.42% |
| 28-Jun-96 | 0.064780 | -0.020730 | 0.010200 | 0.094590 | 0.005790 | -0.007580 | -0.085400 | 0.085710 | -0.001320 | -0.250000 | -0.007660 | -0.030600 | 0.42% |
| 31-Jul-96 | 0.009220 | -0.047620 | -0.065660 | -0.172840 | -0.068330 | -0.004070 | -0.365460 | -0.115790 | -0.077350 | -0.142860 | -0.053390 | -0.078620 | 0.42% |
| 30-Aug-96 | 0.022830 | 0.045560 | -0.084320 | 0.044780 | 0.014490 | -0.020510 | -0.104430 | -0.012140 | 0.119760 | 0.090280 | 0.032220 | 0.044770 | 0.43% |
| 30-Sep-96 | 0.045890 | -0.005350 | 0.224850 | 0.028570 | 0.075510 | 0.041880 | 0.310950 | 0.018180 | 0.041500 | 0.082800 | 0.052990 | 0.028970 | 0.43% |
| 31-Oct-96 | 0.025750 | 0.016130 | -0.028990 | -0.034720 | 0.066410 | 0.013570 | -0.045820 | 0.119050 | 0.005150 | -0.070590 | 0.013940 | -0.019970 | 0.42% |
| 29-Nov-96 | 0.046030 | 0.170370 | 0.161190 | 0.165470 | 0.146620 | 0.196520 | 0.262710 | 0.154260 | 0.164100 | -0.031650 | 0.065730 | 0.024770 | 0.42% |
| 31-Dec-96 | 0.081120 | 0.013640 | 0.077250 | -0.024690 | 0.015580 | -0.049900 | 0.017900 | 0.041290 | 0.065550 | -0.111110 | -0.011350 | -0.001420 | 0.42% |
| 31-Jan-97 | 0.011150 | 0.076230 | 0.007970 | 0.050630 | 0.032210 | 0.003500 | -0.334070 | 0.280000 | 0.070540 | 0.992650 | 0.053040 | 0.061720 | |
| 28-Feb-97 | 0.044120 | 0.055000 | 0.065140 | 0.337350 | 0.144730 | 0.105030 | -0.231020 | -0.089580 | 0.034880 | -0.107010 | -0.000880 | -0.010430 | |
| 31-Mar-97 | -0.128730 | -0.125000 | -0.130110 | -0.135140 | -0.105470 | -0.069310 | 0.032190 | -0.134100 | -0.050040 | -0.070250 | -0.044390 | -0.047880 | |
| 30-Apr-97 | 0.138210 | 0.161900 | 0.162390 | 0.062500 | 0.110920 | 0.077870 | -0.099790 | 0.203540 | 0.108700 | 0.213330 | 0.042460 | -0.021390 | |
| 30-May-97 | 0.060710 | 0.070490 | 0.207650 | -0.245100 | 0.115790 | 0.075250 | 0.092380 | 0.048530 | 0.176470 | -0.054950 | 0.071250 | 0.085170 | |
| 30-Jun-97 | 0.156360 | 0.051920 | -0.012200 | -0.012990 | 0.125000 | 0.046820 | 0.084570 | -0.014080 | -0.001640 | 0.093020 | 0.044200 | 0.044240 | |
| 31-Jul-97 | -0.011700 | 0.199270 | 0.231480 | 0.065790 | 0.181340 | 0.220960 | 0.144250 | 0.148210 | 0.057080 | 0.602840 | 0.076310 | 0.048620 | |
| 29-Aug-97 | -0.059170 | -0.031400 | -0.121600 | -0.006170 | -0.124050 | -0.082240 | 0.085180 | -0.043550 | 0.002160 | 0.053100 | -0.036450 | 0.027020 | |
| Source: Center for Research on Security Prices, University of Chicago. | |||||||||||||
ANSWER
Executive Summary
The company is on the verge of moving from a simple brokerage discounting firm to an investment services firm. At this juncture in the lifecycle of the company it is necessary the decision to invest is taken on grounds of sound financial analysis. The complete future of the company depends on the accuracy o the analysis. While using a comparable companies’ analysis it was found that using the internet services companies for comparison was more appropriate. The final asset beta calculated for the company was 1.61. The calculation was done by calculating the equity betas of the companies using the CAPM model and the monthly treasury bill was used as the risk-free rate. A further sensitivity analysis was done by changing the debt betas of the companies. If the investment cash flows are able to asset beta of 1.61 then the company should go ahead with the investment.
Ameritrade is at a unique point in its history where it has an opportunity to expand. It can move from being a brokerage firm to be a true internet technology giant. Currently it is a pioneer in deep discount brokerage with offerings like online internet trading and personal digital assistant. But to expand the business further the required capital is far more than the current capital that Ameritrade has. It will have to go to the market to raise the required capital and that translates to added risk. The company should be able to evaluate the cash flows from its new investment. But, the rate of return of those cash flows should be higher than the cost of capital that the company will have to face. Its choice of going ahead with the expansion completely depends on whether the analysed cost of capital is more or less than the rate of return the investment promises. Thus, it is absolutely necessary for the company to estimate the cost of capital accurately to make an informed decision. A wrong estimate would mean that the investment of $100 million in technology will simply be a sunk cost and may lead to bankruptcy.
To estimate the same, we start by estimating the beta of the firm using the comparable companies’ method on CAPM. The risk-free rate used will be the 3-month treasury rate which is available in exhibit 6 for each month separately. The reason for the choice is that we are already regressing on monthly data. Thus, a choice of a short-term lending rate and that too for each month will be more useful. The same has been used for both the segments. Similarly, monthly market risk premium has been used for the purpose of regression.
We use the value weighted index as that gives the wholistic picture of the market. The actual market works in terms of the values and switching from one stock to other has an impact from the values of both the stocks. We cannot trade 1 unit of stock A for 1 unit of stock B, it depends on the value and hence we also use the value weighted index. The market risk premium was regressed against the company returns minus the risk-free rate with the intercept set to zero as rf is the intercept which is subtracted already. The following is the result of the equity betas od the selected firms:
|
A G Edwards |
Bear |
Merrill |
Morgan Stanley |
Paine |
Raymond |
Charls Schwab Corp |
Quick and Reilly Group |
Warterhouse Investor Services |
||
|
Investment Services |
Discount Brokerage Firms |
|||||||||
|
Beta |
1.388522 |
1.711195 |
1.866211 |
2.021235 |
1.73818 |
1.477707 |
2.444771 |
2.229844 |
3.023174 |
|
We now move forward to calculating the asset betas of the firm which is the final goal of the analysis. For calculating the same we need to decide on the debt to value rations of the companies. The choice is between the book values and the market values. As the final ai will be to calculate the asset beta we move ahead with the market values. As the current market value is what our company will have to face when it decides to raise debt. The book value is what the respective companies has to employ. That will not be as useful to us currently. The final Asset beta of the firms taking the dbtbeta 0 is as follows:
|
A G Edwards |
Bear |
Merrill |
Morgan Stanley |
Paine |
Raymond |
Charls Schwab Corp |
Quick and Reilly Group |
Warterhouse Investor Services |
||
|
Investment Services |
Discoun Brokage Firms |
|||||||||
|
Asset Beta |
1.388522 |
1.047623813 |
1.106762071 |
1.179067105 |
1.013949944 |
1.439710503 |
2.317145121 |
2.22984449 |
2.177739581 |
|
A further analysis was done taking the debt beta from 0 to 2.5. The results of the same are as follows:
|
Debt Beta |
A G Edwards |
Bear |
Merrill |
Morgan Stanley |
Paine |
Raymond |
Charls Schwab Corp |
Quick and Reilly Group |
Warterhouse Investor Services |
|
|
0 |
1.388522 |
1.047623813 |
1.106762071 |
1.179067105 |
1.013949944 |
1.439710503 |
2.317145121 |
2.22984449 |
2.177739581 |
|
|
0.5 |
1.388522 |
1.297623813 |
1.366762071 |
1.444067105 |
1.278949944 |
1.459710503 |
2.357145121 |
2.22984449 |
2.367739581 |
|
|
1 |
1.388522 |
1.547623813 |
1.626762071 |
1.709067105 |
1.543949944 |
1.479710503 |
2.397145121 |
2.22984449 |
2.557739581 |
|
|
1.5 |
1.388522 |
1.797623813 |
1.886762071 |
1.974067105 |
1.808949944 |
1.499710503 |
2.437145121 |
2.22984449 |
2.747739581 |
|
|
2 |
1.388522 |
2.047623813 |
2.146762071 |
2.239067105 |
2.073949944 |
1.519710503 |
2.477145121 |
2.22984449 |
2.937739581 |
|
|
2.5 |
1.388522 |
2.297623813 |
2.406762071 |
2.504067105 |
2.338949944 |
1.539710503 |
2.517145121 |
2.22984449 |
3.127739581 |
|
We can see that the asset beta for the discount brokerage firms is more than that of the investment services firms as there is a diversification of business in case of the later. They do not only depend on one service which is the case for discount brokerage firms.
As our company is planning to move from discount brokerage to investment services, the choice of comparable companies to be investment services seems more appropriate. Further A G Edwards and Raymond James will be removed from the analysis as their debt to capital value is too less when compared to our company and will skew the results. The debt beta of 1 seems appropriate. At this value the asset beta which is the average of the remaining 4 firms is 1.61. This should be used by the company for further analysis.
Comparable Firms Equity beta
| Date | Treasury Bill (rf) | VW NYSE, AMEX, and NASDAQ |
Market Risk Premium | A G Edwards | Bear Stearns |
Merrill Lynch |
Morgan Stanley Dean Witter |
Paine Webber |
Raymond James |
Charls Schwab Corp | Quick and Reilly Group | Warterhouse Investor Services | A G Edwards | Bear Stearns |
Merrill Lynch |
Morgan Stanley Dean Witter |
Paine Webber |
Raymond James |
Charls Schwab Corp | Quick and Reilly Group | Warterhouse Investor Services | |||||
| Investment Services | Discoun Brokage Firms | Investment Services | Discoun Brokage Firms | |||||||||||||||||||||||
| R-Rf | R-Rf | |||||||||||||||||||||||||
| 31-Jan-92 | 0.32% | -0.001650 | -0.004867 | -0.059327 | 0.062963 | -0.034927 | -0.113257 | -0.019257 | 0.162313 | 0.047483 | -0.012226 | -0.039580 | -0.056110 | 0.066180 | -0.031710 | -0.110040 | -0.016040 | 0.165530 | 0.050699588477366 | -0.009009009009009 | -0.036363636363636 | |||||
| 28-Feb-92 | 0.32% | 0.013290 | 0.010090 | -0.069630 | 0.076800 | -0.022850 | -0.012050 | 0.077230 | -0.006700 | 0.039937 | 0.039709 | 0.227932 | -0.066430 | 0.080000 | -0.019650 | -0.008850 | 0.080430 | -0.003500 | 0.043137254901961 | 0.042909090909091 | 0.231132075471698 | |||||
| 31-Mar-92 | 0.34% | -0.023680 | -0.027038 | -0.092118 | -0.080778 | -0.019018 | -0.016748 | -0.048808 | 0.125482 | 0.037995 | 0.001028 | 0.163308 | -0.088760 | -0.077420 | -0.015660 | -0.013390 | -0.045450 | 0.128840 | 0.041353383458647 | 0.004385964912281 | 0.166666666666667 | |||||
| 30-Apr-92 | 0.33% | 0.013850 | 0.010508 | -0.166562 | -0.010332 | -0.112432 | -0.114202 | -0.146202 | -0.138852 | -0.178504 | -0.252250 | -0.190534 | -0.163220 | -0.006990 | -0.109090 | -0.110860 | -0.142860 | -0.135510 | -0.175162454873646 | -0.248908296943231 | -0.187192118226601 | |||||
| 29-May-92 | 0.30% | 0.006520 | 0.003495 | 0.095745 | 0.003665 | -0.007105 | 0.047665 | 0.046115 | -0.089515 | 0.010133 | 0.000696 | 0.051520 | 0.098770 | 0.006690 | -0.004080 | 0.050690 | 0.049140 | -0.086490 | 0.013157894736842 | 0.003720930232558 | 0.054545454545455 | |||||
| 30-Jun-92 | 0.31% | -0.019240 | -0.022365 | -0.081555 | -0.025345 | 0.038115 | -0.027455 | 0.020545 | -0.018035 | -0.189272 | -0.026381 | -0.215769 | -0.078430 | -0.022220 | 0.041240 | -0.024330 | 0.023670 | -0.014910 | -0.186147186147186 | -0.023255813953488 | -0.21264367816092 | |||||
| 31-Jul-92 | 0.30% | 0.039930 | 0.036972 | -0.009088 | -0.048408 | 0.016842 | 0.094302 | 0.066402 | 0.003062 | 0.047467 | -0.044625 | 0.026239 | -0.006130 | -0.045450 | 0.019800 | 0.097260 | 0.069360 | 0.006020 | 0.050425531914894 | -0.041666666666667 | 0.029197080291971 | |||||
| 31-Aug-92 | 0.26% | -0.020760 | -0.023402 | 0.040818 | -0.016932 | -0.033222 | -0.077822 | -0.137992 | -0.074502 | -0.088936 | -0.023511 | -0.211152 | 0.043460 | -0.014290 | -0.030580 | -0.075180 | -0.135350 | -0.071860 | -0.086294416243655 | -0.020869565217391 | -0.208510638297872 | |||||
| 30-Sep-92 | 0.26% | 0.012420 | 0.009795 | -0.074055 | 0.013635 | 0.017525 | -0.054475 | -0.109545 | -0.115655 | -0.202625 | 0.022853 | 0.042830 | -0.071430 | 0.016260 | 0.020150 | -0.051850 | -0.106920 | -0.113030 | -0.2 | 0.02547770700637 | 0.045454545454546 | |||||
| 30-Oct-92 | 0.22% | 0.010900 | 0.008725 | 0.113205 | 0.021825 | 0.091655 | 0.029075 | 0.138675 | 0.114615 | 0.126158 | 0.041303 | 0.084782 | 0.115380 | 0.024000 | 0.093830 | 0.031250 | 0.140850 | 0.116790 | 0.128333333333333 | 0.043478260869565 | 0.086956521739131 | |||||
| 30-Nov-92 | 0.25% | 0.040190 | 0.037682 | 0.164162 | 0.097882 | 0.093202 | 0.073052 | 0.194772 | 0.206642 | 0.225887 | 0.209635 | 0.325492 | 0.166670 | 0.100390 | 0.095710 | 0.075560 | 0.197280 | 0.209150 | 0.228395061728395 | 0.212142857142857 | 0.328 | |||||
| 31-Dec-92 | 0.28% | 0.017540 | 0.014765 | -0.066615 | 0.042335 | -0.017265 | 0.049115 | 0.007585 | -0.035205 | 0.047476 | -0.027406 | -0.014823 | -0.063840 | 0.045110 | -0.014490 | 0.051890 | 0.010360 | -0.032430 | 0.050251256281407 | -0.024630541871921 | -0.012048192771084 | |||||
| 29-Jan-93 | 0.26% | 0.012330 | 0.009763 | 0.087383 | -0.016957 | 0.096173 | 0.013133 | 0.033333 | 0.135083 | 0.157625 | 0.088342 | 0.229141 | 0.089950 | -0.014390 | 0.098740 | 0.015700 | 0.035900 | 0.137650 | 0.160191387559809 | 0.090909090909091 | 0.231707317073171 | |||||
| 26-Feb-93 | 0.24% | 0.005450 | 0.003033 | -0.021837 | -0.008257 | 0.044233 | 0.019663 | -0.057067 | -0.140347 | 0.067831 | -0.031306 | -0.037070 | -0.019420 | -0.005840 | 0.046650 | 0.022080 | -0.054650 | -0.137930 | 0.070247933884298 | -0.028888888888889 | -0.034653465346535 | |||||
| 31-Mar-93 | 0.25% | 0.025010 | 0.022552 | 0.077742 | 0.079022 | 0.043412 | 0.108042 | 0.087012 | 0.041202 | 0.124955 | 0.040811 | 0.048824 | 0.080200 | 0.081480 | 0.045870 | 0.110500 | 0.089470 | 0.043660 | 0.127413127413127 | 0.043269230769231 | 0.051282051282051 | |||||
| 30-Apr-93 | 0.24% | -0.025510 | -0.027927 | -0.053107 | 0.086623 | -0.012947 | -0.066867 | -0.074877 | 0.003073 | -0.103102 | -0.076149 | -0.099978 | -0.050690 | 0.089040 | -0.010530 | -0.064450 | -0.072460 | 0.005490 | -0.100684931506849 | -0.073732718894009 | -0.097560975609756 | |||||
| 28-May-93 | 0.24% | 0.029420 | 0.027028 | -0.054822 | 0.130938 | 0.077038 | 0.099908 | 0.134068 | 0.035858 | 0.073944 | 0.041389 | 0.470581 | -0.052430 | 0.133330 | 0.079430 | 0.102300 | 0.136460 | 0.038250 | 0.076335877862596 | 0.043781094527363 | 0.472972972972973 | |||||
| 30-Jun-93 | 0.25% | 0.005130 | 0.002597 | 0.049017 | 0.047747 | 0.066777 | 0.048907 | 0.071197 | 0.000837 | 0.210233 | 0.157964 | 0.226824 | 0.051550 | 0.050280 | 0.069310 | 0.051440 | 0.073730 | 0.003370 | 0.212765957446808 | 0.160497607655502 | 0.229357798165138 | |||||
| 30-Jul-93 | 0.25% | -0.000760 | -0.003252 | 0.061238 | 0.024108 | 0.071578 | 0.017398 | 0.031838 | -0.060382 | 0.016807 | 0.062443 | -0.017417 | 0.063730 | 0.026600 | 0.074070 | 0.019890 | 0.034330 | -0.057890 | 0.019298245614035 | 0.064935064935065 | -0.014925373134328 | |||||
| 31-Aug-93 | 0.26% | 0.039340 | 0.036782 | 0.007582 | 0.037342 | 0.116412 | 0.176802 | 0.064662 | 0.151852 | 0.131062 | 0.138905 | 0.296684 | 0.010140 | 0.039900 | 0.118970 | 0.179360 | 0.067220 | 0.154410 | 0.133620689655172 | 0.141463414634146 | 0.299242424242424 | |||||
| 30-Sep-93 | 0.25% | 0.000610 | -0.001898 | 0.080062 | 0.039602 | 0.007802 | 0.047262 | 0.017022 | 0.084872 | 0.046921 | 0.033206 | 0.173445 | 0.082570 | 0.042110 | 0.010310 | 0.049770 | 0.019530 | 0.087380 | 0.049429657794677 | 0.035714285714286 | 0.175953079178886 | |||||
| 29-Oct-93 | 0.24% | 0.018040 | 0.015607 | 0.044177 | -0.113543 | -0.009833 | -0.098693 | -0.102053 | -0.038143 | 0.002639 | -0.012778 | -0.059790 | 0.046610 | -0.111110 | -0.007400 | -0.096260 | -0.099620 | -0.035710 | 0.005072463768116 | -0.010344827586207 | -0.057356608478803 | |||||
| 30-Nov-93 | 0.25% | -0.017350 | -0.019892 | -0.034932 | 0.015638 | -0.065772 | -0.086552 | -0.091052 | -0.030322 | -0.081964 | -0.045050 | -0.185081 | -0.032390 | 0.018180 | -0.063230 | -0.084010 | -0.088510 | -0.027780 | -0.07942238267148 | -0.042508710801394 | -0.182539682539683 | |||||
| 31-Dec-93 | 0.26% | 0.019450 | 0.016833 | -0.035587 | -0.019467 | -0.076997 | -0.016557 | 0.011463 | -0.052617 | 0.013070 | 0.093383 | -0.177374 | -0.032970 | -0.016850 | -0.074380 | -0.013940 | 0.014080 | -0.050000 | 0.015686274509804 | 0.096 | -0.174757281553398 | |||||
| 31-Jan-94 | 0.25% | 0.031330 | 0.028822 | 0.013792 | 0.111782 | 0.070702 | 0.119402 | 0.094712 | 0.062452 | -0.089149 | -0.012998 | -0.002508 | 0.016300 | 0.114290 | 0.073210 | 0.121910 | 0.097220 | 0.064960 | -0.086640926640927 | -0.010489510489511 | 0 | |||||
| 28-Feb-94 | 0.25% | -0.024090 | -0.026607 | -0.050647 | -0.109187 | -0.097227 | -0.159367 | -0.099567 | -0.073437 | -0.070313 | -0.192764 | -0.037811 | -0.048130 | -0.106670 | -0.094710 | -0.156850 | -0.097050 | -0.070920 | -0.067796610169492 | -0.190247349823322 | -0.035294117647059 | |||||
| 31-Mar-94 | 0.28% | -0.045740 | -0.048565 | -0.193165 | -0.101095 | -0.085905 | -0.042225 | -0.049835 | -0.051375 | -0.025552 | -0.099741 | -0.143069 | -0.190340 | -0.098270 | -0.083080 | -0.039400 | -0.047010 | -0.048550 | -0.022727272727273 | -0.096916299559471 | -0.140243902439024 | |||||
| 29-Apr-94 | 0.30% | 0.009830 | 0.006822 | -0.016998 | 0.080322 | -0.013078 | -0.040118 | -0.010418 | -0.043328 | 0.055410 | 0.026260 | -0.095207 | -0.013990 | 0.083330 | -0.010070 | -0.037110 | -0.007410 | -0.040320 | 0.058418604651163 | 0.029268292682927 | -0.092198581560284 | |||||
| 31-May-94 | 0.32% | 0.009500 | 0.006292 | 0.068562 | 0.016612 | 0.060652 | -0.028768 | -0.010968 | -0.006238 | 0.062871 | 0.020299 | -0.050083 | 0.071770 | 0.019820 | 0.063860 | -0.025560 | -0.007760 | -0.003030 | 0.066079295154185 | 0.023507109004739 | -0.046875 | |||||
| 30-Jun-94 | 0.35% | -0.027380 | -0.030888 | -0.083508 | -0.169148 | -0.106068 | -0.051628 | -0.056538 | -0.020458 | -0.185327 | -0.059322 | -0.126459 | -0.080000 | -0.165640 | -0.102560 | -0.048120 | -0.053030 | -0.016950 | -0.181818181818182 | -0.055813953488372 | -0.122950819672131 | |||||
| 29-Jul-94 | 0.34% | 0.030410 | 0.026968 | 0.011048 | -0.054912 | 0.042988 | 0.062488 | 0.028558 | -0.072412 | 0.080195 | -0.028072 | -0.031479 | 0.014490 | -0.051470 | 0.046430 | 0.065930 | 0.032000 | -0.068970 | 0.083636363636364 | -0.024630541871921 | -0.02803738317757 | |||||
| 31-Aug-94 | 0.36% | 0.042830 | 0.039263 | 0.146433 | 0.137523 | 0.111923 | 0.151893 | 0.011623 | 0.181623 | 0.145966 | 0.183100 | 0.319510 | 0.150000 | 0.141090 | 0.115490 | 0.155460 | 0.015190 | 0.185190 | 0.149532710280374 | 0.186666666666667 | 0.323076923076923 | |||||
| 30-Sep-94 | 0.38% | -0.018650 | -0.022442 | -0.090002 | -0.127082 | -0.151482 | -0.113112 | -0.119172 | -0.030042 | -0.040377 | -0.119176 | -0.172909 | -0.086210 | -0.123290 | -0.147690 | -0.109320 | -0.115380 | -0.026250 | -0.036585365853659 | -0.115384615384615 | -0.169117647058824 | |||||
| 31-Oct-94 | 0.39% | 0.014870 | 0.010995 | 0.009825 | 0.011755 | 0.139955 | 0.048435 | 0.056995 | -0.036135 | 0.192581 | -0.008706 | 0.137718 | 0.013700 | 0.015630 | 0.143830 | 0.052310 | 0.060870 | -0.032260 | 0.196455696202532 | -0.004830917874396 | 0.141592920353982 | |||||
| 30-Nov-94 | 0.42% | -0.037070 | -0.041287 | -0.064217 | -0.033447 | -0.039137 | -0.095227 | -0.102907 | -0.045887 | -0.103157 | -0.038391 | -0.120496 | -0.060000 | -0.029230 | -0.034920 | -0.091010 | -0.098690 | -0.041670 | -0.098939929328622 | -0.034174757281553 | -0.116279069767442 | |||||
| 30-Dec-94 | 0.46% | 0.012750 | 0.008108 | 0.038838 | -0.020642 | -0.063852 | -0.006752 | 0.096278 | -0.030732 | 0.089476 | 0.141823 | -0.144993 | 0.043480 | -0.016000 | -0.059210 | -0.002110 | 0.100920 | -0.026090 | 0.094117647058824 | 0.146464646464646 | -0.140350877192982 | |||||
| 31-Jan-95 | 0.46% | 0.020550 | 0.015925 | 0.016205 | 0.076675 | 0.026285 | 0.014445 | -0.004625 | 0.091085 | 0.144909 | 0.083481 | 0.179048 | 0.020830 | 0.081300 | 0.030910 | 0.019070 | 0.000000 | 0.095710 | 0.149534050179211 | 0.088105726872247 | 0.183673469387755 | |||||
| 28-Feb-95 | 0.49% | 0.039620 | 0.034770 | 0.219640 | 0.131990 | 0.114600 | 0.115730 | 0.161480 | 0.159080 | 0.104525 | 0.138146 | 0.193426 | 0.224490 | 0.136840 | 0.119450 | 0.120580 | 0.166330 | 0.163930 | 0.109375 | 0.142995951417004 | 0.198275862068966 | |||||
| 31-Mar-95 | 0.48% | 0.026970 | 0.022170 | -0.020800 | -0.018130 | 0.031790 | -0.000050 | -0.076740 | -0.027900 | 0.085341 | 0.009486 | -0.076742 | -0.016000 | -0.013330 | 0.036590 | 0.004750 | -0.071940 | -0.023100 | 0.090140845070423 | 0.014285714285714 | -0.071942446043166 | |||||
| 28-Apr-95 | 0.47% | 0.024880 | 0.020138 | 0.035028 | 0.110118 | 0.065848 | 0.026798 | 0.057278 | 0.009748 | 0.059134 | 0.139625 | -0.035749 | 0.039770 | 0.114860 | 0.070590 | 0.031540 | 0.062020 | 0.014490 | 0.063875968992248 | 0.144366197183099 | -0.031007751937985 | |||||
| 31-May-95 | 0.48% | 0.034160 | 0.029410 | -0.015680 | 0.033430 | 0.033930 | 0.090570 | 0.155540 | 0.045250 | 0.017148 | 0.152173 | 0.115250 | -0.010930 | 0.038180 | 0.038680 | 0.095320 | 0.160290 | 0.050000 | 0.021897810218978 | 0.156923076923077 | 0.12 | |||||
| 30-Jun-95 | 0.47% | 0.030840 | 0.026157 | -0.004023 | 0.050877 | 0.112337 | 0.072497 | -0.048983 | 0.054637 | 0.248888 | 0.168987 | 0.309602 | 0.000660 | 0.055560 | 0.117020 | 0.077180 | -0.044300 | 0.059320 | 0.253571428571429 | 0.173670212765957 | 0.314285714285714 | |||||
| 31-Jul-95 | 0.45% | 0.040670 | 0.036153 | 0.084373 | 0.030573 | 0.052623 | 0.019203 | 0.081573 | 0.118063 | 0.048589 | 0.046678 | 0.196570 | 0.088890 | 0.035090 | 0.057140 | 0.023720 | 0.086090 | 0.122580 | 0.053105413105413 | 0.051194539249147 | 0.201086956521739 | |||||
| 31-Aug-95 | 0.45% | 0.009340 | 0.004823 | -0.009617 | -0.065537 | 0.038453 | 0.034343 | -0.059637 | 0.006973 | 0.006323 | -0.031140 | 0.040732 | -0.005100 | -0.061020 | 0.042970 | 0.038860 | -0.055120 | 0.011490 | 0.010840108401084 | -0.026623376623377 | 0.045248868778281 | |||||
| 29-Sep-95 | 0.44% | 0.036390 | 0.031990 | 0.093650 | 0.038020 | 0.080200 | 0.112150 | 0.021570 | -0.011670 | 0.239568 | 0.223025 | 0.109137 | 0.098050 | 0.042420 | 0.084600 | 0.116550 | 0.025970 | -0.007270 | 0.243967828418231 | 0.22742474916388 | 0.11353711790393 | |||||
| 31-Oct-95 | 0.44% | -0.011150 | -0.015542 | -0.046642 | -0.079972 | -0.116392 | -0.104182 | 0.115858 | -0.015882 | -0.214219 | -0.227825 | -0.229882 | -0.042250 | -0.075580 | -0.112000 | -0.099790 | 0.120250 | -0.011490 | -0.209827586206897 | -0.223433242506812 | -0.225490196078431 | |||||
| 30-Nov-95 | 0.45% | 0.042970 | 0.038520 | 0.060650 | 0.097440 | 0.000230 | -0.013070 | 0.006620 | 0.047880 | 0.055659 | 0.066918 | -0.004450 | 0.065100 | 0.101890 | 0.004680 | -0.008620 | 0.011070 | 0.052330 | 0.060109289617486 | 0.071368421052632 | 0 | |||||
| 29-Dec-95 | 0.44% | 0.015400 | 0.010967 | -0.120173 | -0.090643 | -0.085513 | -0.069653 | -0.105553 | -0.061003 | -0.174536 | -0.196552 | 0.248731 | -0.115740 | -0.086210 | -0.081080 | -0.065220 | -0.101120 | -0.056570 | -0.170103092783505 | -0.192118226600985 | 0.253164556962025 | |||||
| 31-Jan-96 | 0.41% | 0.028090 | 0.023973 | 0.048243 | 0.153113 | 0.116173 | 0.181623 | 0.033383 | 0.031173 | 0.246318 | 0.130030 | -0.049571 | 0.052360 | 0.157230 | 0.120290 | 0.185740 | 0.037500 | 0.035290 | 0.250434782608696 | 0.134146341463415 | -0.045454545454546 | |||||
| 29-Feb-96 | 0.41% | 0.016050 | 0.011958 | -0.038922 | 0.056778 | 0.009098 | -0.019842 | -0.040482 | 0.001588 | 0.010834 | 0.128381 | 0.038236 | -0.034830 | 0.060870 | 0.013190 | -0.015750 | -0.036390 | 0.005680 | 0.014925373134328 | 0.13247311827957 | 0.042328042328042 | |||||
| 29-Mar-96 | 0.41% | 0.011200 | 0.007150 | 0.028320 | 0.016570 | 0.050180 | 0.105280 | 0.102870 | 0.017190 | 0.010656 | 0.119760 | 0.351280 | 0.032370 | 0.020620 | 0.054230 | 0.109330 | 0.106920 | 0.021240 | 0.014705882352941 | 0.123809523809524 | 0.355329949238579 | |||||
| 30-Apr-96 | 0.42% | 0.025130 | 0.020972 | -0.059438 | 0.010992 | -0.010328 | -0.034448 | -0.055298 | 0.001402 | -0.055753 | 0.029740 | 0.081984 | -0.055280 | 0.015150 | -0.006170 | -0.030290 | -0.051140 | 0.005560 | -0.051594202898551 | 0.033898305084746 | 0.086142322097378 | |||||
| 31-May-96 | 0.42% | 0.026720 | 0.022553 | 0.086263 | 0.010013 | 0.073263 | -0.019097 | 0.049483 | 0.001353 | -0.014371 | 0.108784 | 0.006178 | 0.090430 | 0.014180 | 0.077430 | -0.014930 | 0.053650 | 0.005520 | -0.010204081632653 | 0.112950819672131 | 0.010344827586207 | |||||
| 28-Jun-96 | 0.42% | -0.007660 | -0.011868 | 0.060572 | -0.024938 | 0.001582 | -0.011788 | 0.081502 | -0.005528 | 0.006101 | -0.044799 | 0.009444 | 0.064780 | -0.020730 | 0.005790 | -0.007580 | 0.085710 | -0.001320 | 0.010309278350516 | -0.040590405904059 | 0.013651877133106 | |||||
| 31-Jul-96 | 0.42% | -0.053390 | -0.057590 | 0.005020 | -0.051820 | -0.072530 | -0.008270 | -0.119990 | -0.081550 | -0.017465 | -0.131123 | 0.009268 | 0.009220 | -0.047620 | -0.068330 | -0.004070 | -0.115790 | -0.077350 | -0.013265306122449 | -0.126923076923077 | 0.013468013468014 | |||||
| 30-Aug-96 | 0.43% | 0.032220 | 0.027920 | 0.018530 | 0.041260 | 0.010190 | -0.024810 | -0.016440 | 0.115460 | 0.031969 | 0.029356 | -0.005097 | 0.022830 | 0.045560 | 0.014490 | -0.020510 | -0.012140 | 0.119760 | 0.036269430051814 | 0.033656387665198 | -0.000797342192691 | |||||
| 30-Sep-96 | 0.43% | 0.052990 | 0.048665 | 0.041565 | -0.009675 | 0.071185 | 0.037555 | 0.013855 | 0.037175 | -0.084325 | -0.098342 | 0.009053 | 0.045890 | -0.005350 | 0.075510 | 0.041880 | 0.018180 | 0.041500 | -0.08 | -0.094017094017094 | 0.013377926421405 | |||||
| 31-Oct-96 | 0.42% | 0.013940 | 0.009765 | 0.021575 | 0.011955 | 0.062235 | 0.009395 | 0.114875 | 0.000975 | 0.084955 | -0.013609 | -0.004175 | 0.025750 | 0.016130 | 0.066410 | 0.013570 | 0.119050 | 0.005150 | 0.089130434782609 | -0.009433962264151 | ||||||
| 29-Nov-96 | 0.42% | 0.065730 | 0.061555 | 0.041855 | 0.166195 | 0.142445 | 0.192345 | 0.150085 | 0.159925 | 0.205825 | 0.079825 | -0.004175 | 0.046030 | 0.170370 | 0.146620 | 0.196520 | 0.154260 | 0.164100 | 0.21 | 0.084 | ||||||
| 31-Dec-96 | 0.42% | -0.011350 | -0.015517 | 0.076953 | 0.009473 | 0.011413 | -0.054067 | 0.037123 | 0.061383 | 0.053685 | 0.048697 | -0.004167 | 0.081120 | 0.013640 | 0.015580 | -0.049900 | 0.041290 | 0.065550 | 0.057851239669422 | 0.052863436123348 | ||||||
| A G Edwards | Bear Stearns |
Merrill Lynch |
Morgan Stanley Dean Witter |
Paine Webber |
Raymond James |
Charls Schwab Corp | Quick and Reilly Group | Warterhouse Investor Services | |||||||||||||||||||||
| Investment Services | Discoun Brokage Firms | ||||||||||||||||||||||||||||
| Beta | 1.3885220263725 | 1.71119477530302 | 1.86621066829804 | 2.02123473652104 | 1.7381799891771 | 1.47770720869661 | 2.44477060605411 | 2.22984449044713 | 3.02317388019398 | ||||||||||||||||||||
| Average Beta | 1.70050823406138 | 2.56592965889841 | |||||||||||||||||||||||||||
| SUMMARY OUTPUT | A G Edwards | SUMMARY OUTPUT | Morgan Stanley Dean Witter |
SUMMARY OUTPUT | Charls Schwab Corp | ||||||||||||||||||||||||
| Regression Statistics | Regression Statistics | Regression Statistics | |||||||||||||||||||||||||||
| Multiple R | 0.466427502355096 | Multiple R | 0.653960255003007 | Multiple R | 0.533692190673532 | ||||||||||||||||||||||||
| R Square | 0.217554614953213 | R Square | 0.427664015123597 | R Square | 0.284827354385914 | ||||||||||||||||||||||||
| Adjusted R Square | 0.200605462410841 | Adjusted R Square | 0.410714862581225 | Adjusted R Square | 0.267878201843541 | ||||||||||||||||||||||||
| Standard Error | 0.068376378427407 | Standard Error | 0.060715752179111 | Standard Error | 0.100591936630895 | ||||||||||||||||||||||||
| Observations | 60 | Observations | 60 | Observations | 60 | ||||||||||||||||||||||||
| ANOVA | ANOVA | ANOVA | |||||||||||||||||||||||||||
| df | SS | MS | F | Significance F | df | SS | MS | F | Significance F | df | SS | MS | F | Significance F | |||||||||||||||
| Regression | 1 | 0.076697016043744 | 0.076697016043744 | 16.4046239233325 | 0.000153813448838 | Regression | 1 | 0.162519855496606 | 0.162519855496606 | 44.0863016812427 | 1.17754085879893E-08 | Regression | 1 | 0.237765671460765 | 0.237765671460765 | 23.497562458278 | 9.73344168919529E-06 | ||||||||||||
| Residual | 59 | 0.275844418484034 | 0.004675329126848 | Residual | 59 | 0.217497751197838 | 0.003686402562675 | Residual | 59 | 0.597005525194087 | 0.010118737715154 | ||||||||||||||||||
| Total | 60 | 0.352541434527778 | Total | 60 | 0.380017606694444 | Total | 60 | 0.834771196654851 | |||||||||||||||||||||
| Coefficients | Standard Error | t Stat | P-value | Lower 95% | Upper 95% | Lower 95.0% | Upper 95.0% | Coefficients | Standard Error | t Stat | P-value | Lower 95% | Upper 95% | Lower 95.0% | Upper 95.0% | Coefficients | Standard Error | t Stat | P-value | Lower 95% | Upper 95% | Lower 95.0% | Upper 95.0% | ||||||
| Intercept | 0 | #N/A | #N/A | #N/A | #N/A | #N/A | #N/A | #N/A | Intercept | 0 | #N/A | #N/A | #N/A | #N/A | #N/A | #N/A | #N/A | Intercept | 0 | #N/A | #N/A | #N/A | #N/A | #N/A | #N/A | #N/A | |||
| A G Edwards | 1.3885220263725 | 0.342822749823179 | 4.05026220426931 | 0.000151385010429 | 0.702535288472803 | 2.07450876427219 | 0.702535288472803 | 2.07450876427219 | Morgan Stanley Dean Witter |
2.02123473652104 | 0.304414208508041 | 6.63975162797847 | 1.09839536637836E-08 | 1.41210331227205 | 2.63036616077003 | 1.41210331227205 | 2.63036616077003 | Charls Schwab Corp | 2.44477060605411 | 0.504343826317945 | 4.84742843766445 | 9.46520780891346E-06 | 1.43558094062455 | 3.45396027148367 | 1.43558094062455 | 3.45396027148367 | |||
| SUMMARY OUTPUT | Bear Stearns |
SUMMARY OUTPUT | Paine Webber |
SUMMARY OUTPUT | Quick and Reilly Group | ||||||||||||||||||||||||
| Regression Statistics | Regression Statistics | Regression Statistics | |||||||||||||||||||||||||||
| Multiple R | 0.600993052140226 | Multiple R | 0.530001089601883 | Multiple R | 0.54740542228264 | ||||||||||||||||||||||||
| R Square | 0.361192648720825 | R Square | 0.280901154979183 | R Square | 0.299652696344436 | ||||||||||||||||||||||||
| Adjusted R Square | 0.344243496178452 | Adjusted R Square | 0.26395200243681 | Adjusted R Square | 0.282703543802063 | ||||||||||||||||||||||||
| Standard Error | 0.059091552667654 | Standard Error | 0.072214221472013 | Standard Error | 0.088518218839331 | ||||||||||||||||||||||||
| Observations | 60 | Observations | 60 | Observations | 60 | ||||||||||||||||||||||||
| ANOVA | ANOVA | ANOVA | |||||||||||||||||||||||||||
| df | SS | MS | F | Significance F | df | SS | MS | F | Significance F | df | SS | MS | F | Significance F | |||||||||||||||
| Regression | 1 | 0.116485484924003 | 0.116485484924003 | 33.3596133980861 | 3.18311418980326E-07 | Regression | 1 | 0.120188360908716 | 0.120188360908716 | 23.0471349780739 | 1.15019951732019E-05 | Regression | 1 | 0.197798080887698 | 0.197798080887698 | 25.2439168281807 | 5.14426542762107E-06 | ||||||||||||
| Residual | 59 | 0.206016884203775 | 0.003491811596674 | Residual | 59 | 0.307678733185728 | 0.005214893782809 | Residual | 59 | 0.462293028922772 | 0.007835475066488 | ||||||||||||||||||
| Total | 60 | 0.322502369127778 | Total | 60 | 0.427867094094444 | Total | 60 | 0.660091109810471 | |||||||||||||||||||||
| Coefficients | Standard Error | t Stat | P-value | Lower 95% | Upper 95% | Lower 95.0% | Upper 95.0% | Coefficients | Standard Error | t Stat | P-value | Lower 95% | Upper 95% | Lower 95.0% | Upper 95.0% | Coefficients | Standard Error | t Stat | P-value | Lower 95% | Upper 95% | Lower 95.0% | Upper 95.0% | ||||||
| Intercept | 0 | #N/A | #N/A | #N/A | #N/A | #N/A | #N/A | #N/A | Intercept | 0 | #N/A | #N/A | #N/A | #N/A | #N/A | #N/A | #N/A | Intercept | 0 | #N/A | #N/A | #N/A | #N/A | #N/A | #N/A | #N/A | |||
| Bear Stearns |
1.71119477530302 | 0.296270861995908 | 5.77577816385689 | 3.03671277978538E-07 | 1.11835814978699 | 2.30403140081906 | 1.11835814978699 | 2.30403140081906 | Paine Webber |
1.7381799891771 | 0.3620647736946 | 4.80074316935138 | 1.11941683825687E-05 | 1.01369005044563 | 2.46266992790857 | 1.01369005044563 | 2.46266992790857 | Quick and Reilly Group | 2.22984449044713 | 0.44380910322951 | 5.02433247587983 | 4.98639543222995E-06 | 1.34178452613138 | 3.11790445476288 | 1.34178452613138 | 3.11790445476288 | |||
| SUMMARY OUTPUT | Merrill Lynch |
SUMMARY OUTPUT | Raymond James |
SUMMARY OUTPUT | Warterhouse Investor Services | ||||||||||||||||||||||||
| Regression Statistics | Regression Statistics | Regression Statistics | |||||||||||||||||||||||||||
| Multiple R | 0.670367388287325 | Multiple R | 0.46869855368598 | Multiple R | 0.480142215475107 | ||||||||||||||||||||||||
| R Square | 0.449392435279169 | R Square | 0.219678334227329 | R Square | 0.230536547081344 | ||||||||||||||||||||||||
| Adjusted R Square | 0.432443282736796 | Adjusted R Square | 0.202729181684956 | Adjusted R Square | 0.213587394538971 | ||||||||||||||||||||||||
| Standard Error | 0.053638834234274 | Standard Error | 0.072317277132065 | Standard Error | 0.143416027169132 | ||||||||||||||||||||||||
| Observations | 60 | Observations | 60 | Observations | 60 | ||||||||||||||||||||||||
| ANOVA | ANOVA | ANOVA | |||||||||||||||||||||||||||
| df | SS | MS | F | Significance F | df | SS | MS | F | Significance F | df | SS | MS | F | Significance F | |||||||||||||||
| Regression | 1 | 0.138546084451741 | 0.138546084451741 | 48.1543578045721 | 3.70585240102941E-09 | Regression | 1 | 0.086865976225154 | 0.086865976225154 | 16.6098447447034 | 0.000141401553711 | Regression | 1 | 0.363579320975531 | 0.363579320975531 | 17.676806125368 | 9.17080155753781E-05 | ||||||||||||
| Residual | 59 | 0.169750347742704 | 0.002877124538012 | Residual | 59 | 0.308557525735957 | 0.005229788571796 | Residual | 59 | 1.21352125408966 | 0.020568156848977 | ||||||||||||||||||
| Total | 60 | 0.308296432194444 | Total | 60 | 0.395423501961111 | Total | 60 | 1.57710057506519 | |||||||||||||||||||||
| Coefficients | Standard Error | t Stat | P-value | Lower 95% | Upper 95% | Lower 95.0% | Upper 95.0% | Coefficients | Standard Error | t Stat | P-value | Lower 95% | Upper 95% | Lower 95.0% | Upper 95.0% | Coefficients | Standard Error | t Stat | P-value | Lower 95% | Upper 95% | Lower 95.0% | Upper 95.0% | ||||||
| Intercept | 0 | #N/A | #N/A | #N/A | #N/A | #N/A | #N/A | #N/A | Intercept | 0 | #N/A | #N/A | #N/A | #N/A | #N/A | #N/A | #N/A | Intercept | 0 | #N/A | #N/A | #N/A | #N/A | #N/A | #N/A | #N/A | |||
| Merrill Lynch |
1.86621066829804 | 0.26893224052552 | 6.93933410382956 | 3.4266429124487E-09 | 1.32807849798755 | 2.40434283860852 | 1.32807849798755 | 2.40434283860852 | Raymond James |
1.47770720869661 | 0.362581470038811 | 4.07551772719779 | 0.000139124674081 | 0.752183362968496 | 2.20323105442472 | 0.752183362968496 | 2.20323105442472 | Warterhouse Investor Services | 3.02317388019398 | 0.719053537692635 | 4.20437939836166 | 9.00789066777564E-05 | 1.584351074673 | 4.46199668571497 | 1.584351074673 | 4.46199668571497 | |||
Asset Beta
| A G Edwards | Bear Stearns |
Merrill Lynch |
Morgan Stanley Dean Witter |
Paine Webber |
Raymond James |
Charls Schwab Corp | Quick and Reilly Group | Warterhouse Investor Services | |||
| Investment Services | Discoun Brokage Firms | ||||||||||
| Equity Beta | 1.3885220263725 | 1.71119477530302 | 1.86621066829804 | 2.02123473652104 | 1.7381799891771 | 1.47770720869661 | 2.44477060605411 | 2.22984449044713 | 3.02317388019398 | ||
| Debt/Capital | 0.00 | 0.50 | 0.52 | 0.53 | 0.53 | 0.04 | 0.08 | 0.00 | 0.38 | ||
| Asset Beta | 1.3885220263725 | 1.04762381343639 | 1.10676207058395 | 1.17906710452444 | 1.01394994354236 | 1.4397105032322 | 2.31714512121477 | 2.22984449044713 | 2.17773958143811 | ||
| Debt Beta | 0 | ||||||||||
| Tax | 0.366594236064554 | ||||||||||
| A G Edwards | Bear Stearns |
Merrill Lynch |
Morgan Stanley Dean Witter |
Paine Webber |
Raymond James |
Charls Schwab Corp | Quick and Reilly Group | Warterhouse Investor Services | |||
| 0 | 1.3885220263725 | 1.04762381343639 | 1.10676207058395 | 1.17906710452444 | 1.01394994354236 | 1.4397105032322 | 2.31714512121477 | 2.22984449044713 | 2.17773958143811 | ||
| 0.5 | 1.3885220263725 | 1.29762381343639 | 1.36676207058395 | 1.44406710452444 | 1.27894994354236 | 1.4597105032322 | 2.35714512121477 | 2.22984449044713 | 2.36773958143811 | ||
| 1 | 1.3885220263725 | 1.54762381343639 | 1.62676207058395 | 1.70906710452444 | 1.54394994354236 | 1.4797105032322 | 2.39714512121477 | 2.22984449044713 | 2.55773958143811 | ||
| 1.5 | 1.3885220263725 | 1.79762381343639 | 1.88676207058395 | 1.97406710452444 | 1.80894994354236 | 1.4997105032322 | 2.43714512121477 | 2.22984449044713 | 2.74773958143811 | ||
| 2 | 1.3885220263725 | 2.04762381343639 | 2.14676207058395 | 2.23906710452444 | 2.07394994354236 | 1.5197105032322 | 2.47714512121477 | 2.22984449044713 | 2.93773958143811 | ||
| 2.5 | 1.3885220263725 | 2.29762381343639 | 2.40676207058395 | 2.50406710452444 | 2.33894994354236 | 1.5397105032322 | 2.51714512121477 | 2.22984449044713 | 3.12773958143811 | ||
| 1.60685073302178 | |||||||||||
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