CEPR - Center for Economic and Policy Research

Multimedia

En Español

Em Português

Other Languages

Home Publications Reports Stock Returns for Dummies

Stock Returns for Dummies

December 2001, Dean Baker

This paper points out that there is no way to assess the credibility of proposals to invest Social Security money in the stock market without knowing advocates’ projections for long-term stock market returns. Stock returns have only two parts, dividends and capital gains. By definition, the return on stock must be equal to the sum of these two components, which can be derived from profit-growth projections.

Report pdf_small

 

CEPR.net
donate_new
Combined Federal Campaign #79613