• myGriffith
    • Staff portal
    • Contact Us⌄
      • Future student enquiries 1800 677 728
      • Current student enquiries 1800 154 055
      • International enquiries +61 7 3735 6425
      • General enquiries 07 3735 7111
      • Online enquiries
      • Staff phonebook
    View Item 
    •   Home
    • Griffith Research Online
    • Journal articles
    • View Item
    • Home
    • Griffith Research Online
    • Journal articles
    • View Item
    JavaScript is disabled for your browser. Some features of this site may not work without it.

    Browse

  • All of Griffith Research Online
    • Communities & Collections
    • Authors
    • By Issue Date
    • Titles
  • This Collection
    • Authors
    • By Issue Date
    • Titles
  • Statistics

  • Most Popular Items
  • Statistics by Country
  • Most Popular Authors
  • Support

  • Contact us
  • FAQs
  • Admin login

  • Login
  • Stock Returns and Holding Periods

    Thumbnail
    View/Open
    80347_1.pdf (277.0Kb)
    Author(s)
    Li, Bin
    Liu, Benjamin
    Bianchi, Robert
    Su, Jen Je
    Griffith University Author(s)
    Bianchi, Robert
    Liu, Benjamin
    Su, Jen-Je
    Li, Bin
    Year published
    2012
    Metadata
    Show full item record
    Abstract
    While it is generally accepted that equities achieve higher returns than fixed interest on average over the longer run, recent financial market volatility and poor equity performance have raised questions about the required holding period. Our study addresses this issue by examining US stocks and Treasury bills from 1963 to 2011. We find that a 15-year holding period is required to ensure a 95 per cent probability that stocks will outperform the risk-free rate of return. And, for large market capitalisation stock portfolios (favoured by pension funds) the investment horizon is even longer.While it is generally accepted that equities achieve higher returns than fixed interest on average over the longer run, recent financial market volatility and poor equity performance have raised questions about the required holding period. Our study addresses this issue by examining US stocks and Treasury bills from 1963 to 2011. We find that a 15-year holding period is required to ensure a 95 per cent probability that stocks will outperform the risk-free rate of return. And, for large market capitalisation stock portfolios (favoured by pension funds) the investment horizon is even longer.
    View less >
    Journal Title
    JASSA
    Volume
    2012
    Issue
    2
    Publisher URI
    https://www.finsia.com/news-hub/ajaf
    Copyright Statement
    © 2012 JASSA and the Authors. The attached file is reproduced here in accordance with the copyright policy of the publisher. Please refer to the journal's website for access to the definitive, published version.
    Subject
    Accounting, auditing and accountability
    Banking, finance and investment
    Finance
    Publication URI
    http://hdl.handle.net/10072/47226
    Collection
    • Journal articles

    Footer

    Disclaimer

    • Privacy policy
    • Copyright matters
    • CRICOS Provider - 00233E

    Tagline

    • Gold Coast
    • Logan
    • Brisbane - Queensland, Australia
    First Peoples of Australia
    • Aboriginal
    • Torres Strait Islander