Thornton Financial Consulting from the D-PEND-ON Lineage

Thornton Financial Consulting brochure for regulators (.pdf 319 kb) TFC Brochure for Regulators	Thornton Financial Consulting brochure for consumer groups (.pdf 339 kb) TFC Brochure for Consumer Groups
SUMMARY ARTICLE FOR FINANCIAL ECONOMISTS This note summarizes different approaches in using historical market return and interest rate data to estimate the expected market risk premium, such as might be used in the capital asset pricing model (CAPM). Some practitioners use arithmetic averages of historical data (Ibbotson Associates SBBI 1996 Yearbook as an example) while others discuss the geometric average Mark Kritzman (FAJ May-June 1993). The question is which method is correct, arithmetic or geometric? The answer is that it depends on what investment holding period assumption you make. (.pdf 37 kb) The Use of Historical Data for the E[MRP]	See Jeremy Siegel's book for a long-term understanding of stock returns from domestic and international perspectives.
Download an exclusive interview with Arizona Corporation Commissioner Jeff Hatch-Miller. Gain a fascinating insight into how one commissioner made his decision in the disapproved KKR/UniSource merger proposal. (.pdf 919 kb) TFC Newsletter Spring 2005	See Dimson, Marsh, and Staunton's book for a long-term perspective on international and U.S. asset returns.  Their book covers sixteen countries with data from the end of the nineteenth century to the beginning of the twenty-first century.  They dispell many myths regarding asset returns and their premiums.