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The Required Rate Of Return For Publicly Held Agricultural Equity: An Arbitrage Pricing Theory Approach

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  • Collins, Robert A.

Abstract

Recent interest in equity financing for commercial agriculture has created the need to reexamine the required rate of return for agricultural equity. The required rates of return for ten publicly held firms with agricultural operations are examined with arbitrage pricing theory. The results suggest that the required rate of return for this group of firms is similar to the required rate of return for an average share of stock.

Suggested Citation

  • Collins, Robert A., 1988. "The Required Rate Of Return For Publicly Held Agricultural Equity: An Arbitrage Pricing Theory Approach," Western Journal of Agricultural Economics, Western Agricultural Economics Association, vol. 13(2), pages 1-6, December.
    • Handle: RePEc:ags:wjagec:32116
    DOI: 10.22004/ag.econ.32116
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    References listed on IDEAS

    as
    1. John R. Fiske & Marvin T. Batte & Warren F. Lee, 1986. "Nonfarm Equity in Agriculture: Past, Present, and Future," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 68(5), pages 1319-1323.
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    4. Robert A. Collins, 1985. "Expected Utility, Debt-Equity Structure, and Risk Balancing," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 67(3), pages 627-629.
    5. Chen, Nai-fu, 1983. "Some Empirical Tests of the Theory of Arbitrage Pricing," Journal of Finance, American Finance Association, vol. 38(5), pages 1393-1414, December.
    6. Bower, Dorothy H & Bower, Richard S & Logue, Dennis E, 1984. "Arbitrage Pricing Theory and Utility Stock Returns," Journal of Finance, American Finance Association, vol. 39(4), pages 1041-1054, September.
    7. Marshall E. Blume & Frank Husic, "undated". "Price, Beta and Exchange Listing," Rodney L. White Center for Financial Research Working Papers 9-72, Wharton School Rodney L. White Center for Financial Research.
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    Keywords

    Agricultural Finance;

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