Appendices to Expected Returns to Stock Investments by Angel Investors in Groups

19 Pages Posted: 22 Aug 2012 Last revised: 20 Sep 2012

See all articles by Ramon P. DeGennaro

Ramon P. DeGennaro

University of Tennessee, Knoxville - Department of Finance

Gerald P. Dwyer

Clemson University; Australian National University (ANU) - Centre for Applied Macroeconomic Analysis (CAMA)

Date Written: August 21, 2012

Abstract

Previous research calculates realized internal rates of return on angel investments but does not estimate expected returns. We present the first estimates of expected returns on angel investments by applying a consistent statistical framework to a new data set. Our sample spans 1972 to 2007 with 419 exited investments. Our results suggest that expected returns on stock for angel investors in groups are about 70 percent per year in excess of the riskfree rate. These expected returns have a large variance and are heavily skewed, with many losses and occasional extraordinarily high returns. DeGennaro and Dwyer (2012) refers to these appendicies.

The paper "Expected Returns to Stock Investments by Angel Investors in Groups" to which these Appendices apply is available at the following URL: http://ssrn.com/abstract=1679207

Keywords: Angel Investor, Expected Return, Private Equity

JEL Classification: G24, G20

Suggested Citation

DeGennaro, Ramon P. and Dwyer, Gerald P., Appendices to Expected Returns to Stock Investments by Angel Investors in Groups (August 21, 2012). Available at SSRN: https://ssrn.com/abstract=2133427 or http://dx.doi.org/10.2139/ssrn.2133427

Ramon P. DeGennaro (Contact Author)

University of Tennessee, Knoxville - Department of Finance ( email )

423 Stokely Management Center
Knoxville, TN 37996
United States
865-974-1726 (Phone)
865-974-1716 (Fax)

Gerald P. Dwyer

Clemson University ( email )

Department of Economics
Clemson University
Clemson, SC 29634
United States

Australian National University (ANU) - Centre for Applied Macroeconomic Analysis (CAMA) ( email )

ANU College of Business and Economics
Canberra, Australian Capital Territory 0200
Australia

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