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Common Stock Expected Returns

The table below shows the actual yearly performance of portfolios based on our proprietary expected risk premium ratings*.

6-Month Ending Above Average Average Below Average
06/30/2005 7.2% -0.5% -15.2%

Year Ending Above Average Average Below Average
12/31/2004 17.3% 17.8% 20.1%
12/31/2003 66.4% 52.2% 69.2%
12/31/2002 6.8% -14.4% -38.1%
12/31/2001 27.5% 16.2% 0.6%
12/31/2000 7.6% 4.8% -31.5%
12/31/1999 80.1% 15.3% 9.5%
12/31/1998 20.7% 5.4% -18.4%
12/31/1997 36.6% 29.4% -3.6%
12/31/1996 19.1% 18.3% 9.1%

* The portfolios are equally-weighted and rebalanced monthly. Transaction costs are not considered.

Understanding each column
Expected Risk Return

Calculated E.R. using sum of the exposure to every factor multiplied by its payoff coefficient

  • Value can be negative or positive; no min./max. value
  • Represents forecast one-month return premium relative to risk-free rate

    Ticker Company Name Sector Industry Exp. Risk
    Premium
    CWTR Coldwater Creek Cons Discr Internet Catalog +3.697*
    MESA Mesa Air Group Industrial Airlines -4.343*
    * Sample as of 06/30/04