Reserve accounts, 195–196
Residual risk, 140
Resistance level, 294
Retained earnings, 98
Return biases, in stock indexes,
46–47
Returns:
arithmetic, 22
buy-and-hold, 215
effects of costs on, 350
from 1802-1870, 21–22
from 1802-present, 5–7, 6i
excess, 215
for fixed-income assets,
standard deviation of, 30
geometric, 22
long-term, 12–14, 13i
from market peaks, 27, 28i
mean reversion of, 13
measurement of, 23–24
predicting using trend lines,
41–42
real (seeReal returns)
realistic expectations for,
360–361
short-term, 14
on stocks and bonds, correla-
tion between, 30–32, 31i
switching, 214–215, 215i
taxes and (seeTaxes)
time horizons and, 361
total, defined, 5
Revenue Act of 1913, 74
Review of Economic Statistics, 81
Rexall Drug, 62
Rhea, Charles, 290
Richardson, Scott, 108n
Richardson Merrell, 60i, 62
Risk:
in defined benefit plans,
106–107
diversifiable (residual), 140
holding period and, 24–27,
25 i, 26i
local, 169
measurement of, 23–24
standard measures of, 28–30,
29 i
Risk(Cont.):
to stockholders, lowering of
by employee stock options,
105
Ritter, Jay, 310n
RJ Reynolds Tobacco Co., 60i, 62
RJR Nabisco, 62
Roberts, Harry, 291, 292
Roche, 177
Roosevelt, Franklin D., 193, 227,
232
Ross, Stephen A., 18n
Royal Bank of Scotland, 175
Royal Dutch Petroleum, 55, 56i,
183
Royal Dutch Shell, 183
Ruane, Cunniff, and Goldfarb,
346
Russell 1000, 45, 46i
Russell 2000, 45, 46i
Russell 3000, 45
Russell 2000 Index, 142n
Russell indexes, 342
Russian default on bonds, 88S. A. B. de C. V., 177
Safe-haven status, 32
Samsonite fund, 351n
Samsung Electronic, 177
Samuelson, Paul, 24, 35n, 207q,
292
Samuelson, William, 35n
Saturday Night Massacre, 195
Saunders, Edward M., Jr., 314n
SBC Communications, 58
Schering, 59i
Schleifer, A., 326n
Schlumberger, 59i, 61
Schlumberger, Conrad, 61
Schmitt, Dennis E., 303n
Schneider, D. J., 326n
Scholes, Myron, 265, 266
Schwert, G. William, 5n
Sears and Roebuck, 56i, 57
Seasonal anomalies, 306–316
January effect, 306–311, 307i
large monthly returns and,
311, 312i, 313iSeasonal anomalies (Cont.):
September effect, 311,
313–315, 314i
Sector diversification, in global
market, 173–177, 174i, 175i
Sectors, in S&P 500, 52–58, 53i,
55 i, 56i
Security Analysis(Graham and
Dodd), 83, 141, 150
Self-attribution bias, 326
Sell-on-close orders, 318
Sell programs, 258
Sentiment, 333–334, 335i
September effect, 311, 313–315,
314 i
Sequoia Fund, 346
Settlement dates, for futures,
256
Settlement procedure, for
futures, 257
Shareholder value, sources of,
98–102
Sharpe, William, 140n, 266n, 345
Shefrin, Hersh, 329n, 331n
Shell Oil, 55, 56i
Shell Transport and Trading, 183
Shiller, Robert, 5n, 87, 91, 285,
323, 325n
Short-term returns, 14
Shorting stock, 262
Shulman, David, 86
Siegel, Jeremy, 7n, 17n, 86, 88–89,
100 n, 159n, 305, 354n, 363
Siemens, 177
Silk, Leonard, 218
Silverblatt, Howard, 107n, 108n
Sinquefield, Rex, 84
Slatter, John, 147
Sloan, Paul, 90n, 331n
Sloan, Richard, 108
Slovic, P., 326n
Small-cap stocks
large-cap stocks versus,
141–144, 142i
trends in returns on,
142–144, 143i
Smith, Edgar Lawrence, 79–81,
81 n, 82, 83, 86, 201Index 377