Stock duration

Stock duration

Stock duration is the duration of an equity stocks is the percentage change in stock prices in response to a 1% change in the long-term return that stocks are priced to deliver.

Duration

The duration is about 67 (February, 2004) (the precise figure depends on the exact return that you believe stocks are priced to deliver).

Modified duration

For the stock market as a whole, the modified duration is simply the price/dividend ratio, which for the S&P 500 is currently about 62 (February, 2004).

ee also

*Bond duration

External links

* [http://www.hussman.net/wmc/wmc040223.htm Hussman Funds - Weekly Market Comment: February 23, 2004 - Buy-and-Hold For the Duration?]

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