G12 - Asset Pricing; Trading Volume; Bond Interest RatesReturn

Emission of the greenhouse gases has a significant impact on the environment of the whole planet. Innumerable international plenary sessions have agreed only on partial solutions. The signatory countries came up with the instrument which should improve the air quality- the emission allowances. The politicians and environmentalists involved in the Kyoto Protocol and subsequent Paris Agreement have negotiated emission reductions. Achievement of this goal is established for years 2005 - 2030. 43 % of current greenhouse gas emissions should be reduced. Each allowance represents the right to emit one tonne of carbon dioxide (CO₂) or the equivalent amount of two more powerful greenhouse gases, nitrous oxide (N₂O) and perfluorocarbons (PFCs). Allowances are distributed among individual countries, which allocate them free of charge to plants, factories and other fixed installations. These emission allowances can be the subject of trade between these operators. All these facts result in questions related to the accounting methods. How many allowances are needed? Should they be recognised as an asset? Is their price regulation necessary? Can emission allowances reduce greenhouse gases or are government subsidies and compensations - alternatively carbon taxes - more suitable for this purpose? Is the business environment more or less destroyed? The goal of this article is to contribute by critical discussion to easier, fair and true recognition of emission allowances.

Presented paper is dealing with using selected fundamental indicators by building a stock portfolio. Analysis is focused on using P/E and P/BV indicators by building a stock portfolio from stocks listed on Prague Stock Exchange. The aim of this paper is answer on question, if stocks with lower P/E and/or P/BV bring investor higher return than stocks with higher values of these indicators or not. The usability of indicators was confirmed by our findings. Another conclusion of this paper is finding that stocks with lower P/E and/or P/BV exceeded benchmark represented by index PX-TR. Observed time period was from 2004 till 2014. Selected period was also divided on 5 year slip periods. Results show that stock with lower P/E or P/BV bring higher profit than stock with higher P/E or P/BV. These stocks also exceeded the benchmark.

This article is focused on the effect and implication of a change in the money supply for the US capital market. This market was chosen according to its part on the global market capitalization. Namely it is the Dow Jones Industrial Average (DJIA), which was chosen according to its long history, global sense and stabile construction. The money supply will be measured by the wider aggregate M2 and aggregate MZM (money with zero maturity). The goal of this paper is to detect, if the money supply influenced the stock indices in the years 1967 - 2011, if the impact of both money aggregates is nearly the same, and how the money supply influenced the bubble creation.

The aim of the article is to demonstrate the use of the Laplace transform to the evaluation of consols' present value under different streams of returns (dividends). Consols (or perpetual bonds, perpetuities) are bonds with no maturity, which means that interest is paid to a bondholder perpetually (usually annually) forever. The present value of a consol, when constant interest is paid, is simply a ratio of this interest and interest rate. However, when interest payments (stream of returns to a bondholder) change in time the evaluation of consol's present value is more complicated. In the first part of this article it is shown that the Laplace transform of a stream of returns can be used to the evaluation present value of a consol under assumption of continuous compounding; and moreover, with the inverse Laplace transform an unknown stream of returns can be reconstructed from the known consol's present value. In the second part of the paper, the use of the Laplace transform for the present value evaluation is illustrated by examples.

This article explores CAPM equilibrium model with the objective to formulate and test hypotheses that should equilibrium model of capital asset pricing holds whether one believes in this model. We examined whether the strategies with respect to risk (Beta) over long period produce returns consistent with modern capital theory, as well as of CAPM model. Therefore we formulated an hypotheses whether higher risk, expressed by Beta, should be associated with a higher level of return and whether the return is linearly related to market portfolio through Beta coefficient significantly. To test this hypothesis on empirical data we used two tests of CAPM model, test of Sharpe and Cooper and test of Black, Jensen, and Scholes.