In equation (5), [R.sup.i.sub.t+k] is the realized return
on a stock or portfolio i from time t to t+k.
In addition, businesses that implement fleet tracking typically realized return
on investment in as little as one month.
Measure 2 more closely aligns income and wealth by excluding these items, but may underestimate the realized return
on capital for decedents whose businesses paid them a salary.
The marginal distribution of return on A always dominates the corresponding distribution on B, and the only rationale for allocating funds to the second asset (B) follows from the possibility that realized return
on A would be low when the return on B is high; that is, from nonperfect correlation in returns.
In Equations (7) to (10) [R.sub.i,t] is the realized return
on stock i in month t, [logME.sub.i,t-1] is the natural logarithm of market equity for firm i in month t - 1, log([BE.sub.i,t-1]/[ME.sub.i,t-1]) is the natural logarithm of the ratio of book value of equity to market value of equity for firm i in month t - 1, [[beta].sup.realized.sub.i,t-1] is the lagged realized beta of stock i in month t - 1, and [[beta].sup.AR.sub.i,t|t-1], [[beta].sup.MA.sub.i,t|t-1], and [[beta].sup.GARCH.sub.i,t|t-1] are the conditional expected beta of stock i in month t estimated with the information set at month t - 1.
Specifically, over the last few years a very active research agenda into the direct (model-free) measurement of the realized return
variation and covariation of financial assets at daily or even higher intraday frequencies has developed.
Mayo spent between $5.5 million and $6 million when it implemented the system a decade ago, according to clinic officials, and realized return
on the initial investment within five years.
Eighty-five percent of respondents indicated they view risk management as an investment, in particular because they believe it protects their business continuity and there is a realized return
Simulation results, by converging to the average realized return
over that particular sample period, obscure these unpleasant possibilities.
This occurs because the cross-sectional distribution of security returns is right-skewed, and the size-adjusted returns are measured as the difference between the realized return
and the mean return for all stocks in the same market capitalization decile.