One of the main features of our study is that we consider the margin requirements (guarantees) regulatory established as the initial investment committed, and therefore we compare the net payoff with the margin requirements along the life of the contract to obtain a realized return
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.
The difference between this required return rate and the realized return
rate for apartments for a one-year time period is--2.
RETBND4 is a four-quarter moving average of the ex post realized return
on bond funds;
To do so we define a metric to measure options returns from the seller point of view, write an algorithm -which is applied on historic data- that simulates the sale of at-themoney european options and collects premiums at ex-ante market real prices (inflow of money to the seller of options), hold these contracts open until the original expiration which is our definition of passive investment strategies-, calculates the ex- post payoffs (outflow of money for the seller in case the option ends up in the money) and with that data calculating a realized return
In particular, I will allow for heterogeneity in both abilities, and in realized returns
to human capital over a life-cycle.