Bias(Cont.):
representative, 326
return, in stock indexes,
46–47
self-attribution, 326
survivorship, 18, 343, 343i
Big Board (seeNew York Stock
Exchange [NYSE])
Bikhchandani, S. D., 325n
Bill and Melinda Gates
Foundation, 7n
Bills, interest rates on, 7–9, 9i
Birrell, Lowell, 38–39
Black, Fischer, 265, 266n
Black-Scholes formula, 266
Blake, Christopher R., 348
Blitzer, David, 107, 108n, 353n
Blodget, S., Jr., 7n
Blue Chip Economic Indicators,
217, 218
Bodie, Zvi, 35n
Bogle, John C., 343n, 348
Bonds:
current yield of, 111
equity premium and, 16–18,
17 i
government, interest rate on,
above dividend yield on
common stocks, 95–97
inflation-indexed, 35
long-term performance of,
7–9, 9i
real returns on, 14–15, 15i
return on, correlation with
stock returns, 30–32, 31i
Russian default on, 88
standard deviation of re-
turns for, 30
stocks’ outperformance of,
26
yields on, stock yields re-
lated to, 95–97
(See alsoFixed-income assets)
Book value, 117
Bos, Roger, J., 353n
Bosland, Chelcie C., 82
Boyd, John, 241n
BP (British Petroleum), 177, 183
BP Amoco, 55
Brealey, Richard A., 171n
Bristol Myers, 59n
British American Tobacco, 63, 177
Brock, William, 295n, 304n
Brown, Stephen J., 18n
Browne & Co., 21n
Bubbles:
stock (seeStock bubbles)
technology, 167
Buffett, Warren, 7n, 61, 104, 107,
187 q, 268, 359q
Bull markets:
beginning of, 85–86
from 1982-1999, 14
Bureau of Labor Statistics (BLS),
241
Burns, Arthur, 210n
Bush, George W., 69, 75
Business cycle, 207–219, 285
dating of, 208–21 1
definition of, 209–210
prediction of, 216–219
timing of, gains through,
214–216, 215i
turning points of, stock
returns around, 211–214,
212 i–214i
Buy-and-hold returns, 215
Buy and write strategy, 267
Buy programs, 258
Buybacks, 98CAC index, 238
Calendar anomalies, 305–318
day-of-the-week effects,
316–318, 317i
investing strategies for, 318
seasonal, 306–316
California Packing Co., 60i, 62
Calls, 264
Campbell, John Y., 35n, 87, 158
Capital asset pricing model
(CAPM), 140, 141
Capital gains taxes:
benefits of deferring, 69–70
failure of stocks as long-term
inflation hedge and, 204Capital gains taxes (Cont.):
historical, 66, 67i
increasingly favorable tax
factors for equities and,
72–73
inflation and, 70–72, 71i
total after-tax returns index
and, 66, 68–69, 68i, 69i
Capitalization-weighted index-
ing, 351–352, 352i
fundamentally weighted
indexationversus, 353–355
Carnegie, Andrew, 57
Carvell, Tim, 107n
Cash flows, from stocks,
valuation of, 97–98
Cash market, 257
Cash-settled futures contracts,
257
CBOE Volatility Index, 281–282,
282 i
Celanese Corp., 60i, 64
Center for Research in Security
Prices (CRSP) index, 45, 46i,
141
Central bank policy, 247
(See alsoFederal Reserve
System [Fed])
Chamberlain, Lawrence, 82
Chamberlain, Neville, 78
Channels, 40
technical analysis and, 294
Chartists (seeTechnical analysis)
Chevron, 176i, 177
ChevronTexaco, 55
Chicago Board of Trade (CBOT):
closure due to Chicago River
leak, 253, 254i, 255
stock market crash of 1987
and, 273
Chicago Board Options
Exchange (CBOE), 264–265
Volatility Index of, 281–282,
282 i
Chicago Gas, 47
in DJIA, 39i, 48
Chicago Mercantile Exchange,
stopping of trading on, 276368 Index