Published online by Cambridge University Press: 18 August 2016
It has been the experience for many years that a purchase of ordinary shares has been the purchase of an investment portfolio with a rising income. There has also been an improvement in the status of equities as an investment, or, in other words, investors are now prepared to pay more for a given equity income. It is shown in Appendix I that from 1919 to 1962 the income of a particular portfolio was multiplied over 5 times and the market valuation over 7 times. For the years 1952 to 1962 the corresponding figures are 2·2 times and 2·7 times respectively.
page 183 note * There is an exact identity if the running yield on the portfolio of equities is multiplied by (1 + ·01x).
page 198 note * T.F.A. 28, 231
page 200 note * J.I.A., 86, 1.