Stock duration
From Wikipedia, the free encyclopedia
 |
The introduction to this article provides insufficient context for those unfamiliar with the subject. Please help improve the article with a good introductory style. |
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.
Contents |
[edit] Duration
The duration is about 67 (February, 2004) (the precise figure depends on the exact return that you believe stocks are priced to deliver).
[edit] 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).
