I am on page 650 of the ASM manual. Paragraph 6 and 7.
d = annualized dividend rate
The dividend payments, paid each day, will buy (1+d/365)^365t shares of a stock index from 0 to t, if reinvested.
I don't understand the steps used to derive this formula.
Paragraph 7 is actually a special note trying to explain the confusion the author anticipated. I don't understand the note either.
I don't understand what the author meant by:
"we will consider d to be a constant dividend rate based on the value of the stock index at any moment in time."
Paragraph 7.
d = annualized dividend rate
The dividend payments, paid each day, will buy (1+d/365)^365t shares of a stock index from 0 to t, if reinvested.
I don't understand the steps used to derive this formula.
Paragraph 7 is actually a special note trying to explain the confusion the author anticipated. I don't understand the note either.
I don't understand what the author meant by:
"we will consider d to be a constant dividend rate based on the value of the stock index at any moment in time."
Paragraph 7.
Determining how many shares each dividend payment can buy
0 commentaires:
Enregistrer un commentaire