We consider a Diamond-type model of endogenous growth in which there are three assets: fiat money, government bonds, and equity. Because of productivity shocks, the equity return is uncertain, and risk-averse investors require a positive equity premium. Typically, there exist two steady states, but only one of them turns out to be stable. Tight monetary policy is harmful for growth in the stabl...

The researcher conducted this research because he was interested in investing uncertain returns, the used variables study as consideration.This aims to determine effect of Net Profit Margin (NPM), Return On Asset (ROA), on Equity (ROE), and Inflation Stock Prices LQ45 companies listed Indonesia Exchange (IDX) for period 2015-2019. prices can be an assessment investor buy shares company. tend fl...

In our contribution, we model bank profitability via return-on-assets (ROA) and return-on-equity (ROE) in a stochastic setting. We recall that the ROA is an indication of the operational efficiency of the bank while the ROE is a measure of equity holder returns and the potential growth on their investment. As regards the ROE, banks hold capital in order to prevent bank failure and meet bank cap...

1 Acknowledgements I wanted to thank my reader Professor Lisa Meulbroek for all that she has taught me about financial economics as well as her help on this paper. I would like to thank my mom and dad for the guidance and support they have shown me over my years. And lastly but certainly not least I want to thank my two little sisters, Amelia and Colleen, for being the best sisters I could ever...

The author presents a search-based model in which money coexists with equity shares on a risky aggregate endowment. Agents can use equity as a means of payment, so shocks to equity prices translate into aggregate liquidity shocks that disrupt the mechanism of exchange. The author characterizes a family of optimal monetary policies and finds that the resulting equity prices are independent of mo...

The returns and risks of investment portfolio in a financial system was investigated by constructing a theoreticalmodel based on the Hestonmodel. After the theoreticalmodel and analysis of portfolio were calculated and analyzed, we find the following: (i) The statistical properties (i.e., the probability distribution, the variance and loss rate of equity portfolio return) between simulation res...