A Comparison of Alternative Capital Budgeting Criteria Dervved in the Context of the Capital Asset Pricing Model
Author: Erik Engebretsen
Publisher:
Published: 1978
Total Pages:
ISBN-13:
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Author: Erik Engebretsen
Publisher:
Published: 1978
Total Pages:
ISBN-13:
DOWNLOAD EBOOKAuthor: Attiya Y. Javed
Publisher:
Published: 2000
Total Pages: 48
ISBN-13:
DOWNLOAD EBOOKAuthor: Paul R. Beasley
Publisher:
Published: 1975
Total Pages: 126
ISBN-13:
DOWNLOAD EBOOKAuthor: Harold Bierman
Publisher:
Published: 1986
Total Pages: 84
ISBN-13:
DOWNLOAD EBOOKAuthor: Manuel Kürschner
Publisher: GRIN Verlag
Published: 2008-07-04
Total Pages: 41
ISBN-13: 3638073300
DOWNLOAD EBOOKResearch Paper (undergraduate) from the year 2008 in the subject Business economics - Banking, Stock Exchanges, Insurance, Accounting, grade: 1,3, University of Cooperative Education, language: English, abstract: The objective of this paper is to give an overview of the most important movements of the complex area of asset pricing. This will be tried by logically structuring and building up the topic from its origins, the Capital Asset Pricing Model, and then over its main points of critique, in order to arrive at the different options developed by financial science that try to resolve those problematic aspects. Due to the complexity of this subject and the limited scope of this paper, obviously it will not be possible to discuss each model or movement in depth. Coherently, the aim is to point out the main thoughts of each aspect discussed. For further information, especially concerning the deeper mathematical backgrounds and derivations of the models, the author would like to refer the reader to the books mentioned in this paper. Many of those works, finance journal publications and the literature on asset pricing in general, set their focus on different parts of this paper, which again underlines the complexity in terms of scientific scope and intellectual and mathematical intricacy of this topic.
Author: Manuel Kürschner
Publisher: GRIN Verlag
Published: 2008-07
Total Pages: 81
ISBN-13: 3640099257
DOWNLOAD EBOOKResearch Paper (undergraduate) from the year 2008 in the subject Business economics - Banking, Stock Exchanges, Insurance, Accounting, grade: 1,3, University of Cooperative Education, 31 entries in the bibliography, language: English, abstract: The objective of this paper is to give an overview of the most important movements of the complex area of asset pricing. This will be tried by logically structuring and building up the topic from its origins, the Capital Asset Pricing Model, and then over its main points of critique, in order to arrive at the different options developed by financial science that try to resolve those problematic aspects. Due to the complexity of this subject and the limited scope of this paper, obviously it will not be possible to discuss each model or movement in depth. Coherently, the aim is to point out the main thoughts of each aspect discussed. For further information, especially concerning the deeper mathematical backgrounds and derivations of the models, the author would like to refer the reader to the books mentioned in this paper. Many of those works, finance journal publications and the literature on asset pricing in general, set their focus on different parts of this paper, which again underlines the complexity in terms of scientific scope and intellectual and mathematical intricacy of this topic.
Author: Willard Eldridge Brown
Publisher:
Published: 1976
Total Pages: 186
ISBN-13:
DOWNLOAD EBOOKAuthor: Carlo Alberto Magni
Publisher:
Published: 2009
Total Pages: 15
ISBN-13:
DOWNLOAD EBOOKThis paper deals with the CAPM-derived capital budgeting criterion, and in particular with Rubinstein's (1973) criterion, according to which a project is profitable if the project rate of return is greater than the risk-adjusted cost of capital, where the latter depends on the project's disequilibrium systematic risk. It is shown that the disequilibrium net present value implied by this criterion, widely used in corporate finance, is nonadditive. Four proofs are provided: (i) a counterexample taken from Copeland and Weston (1988), (ii) a modus-tollens argument showing that this notion of NPV is incompatible with additivity, (iii) a formalization showing that this NPV does not fulfil the principle of description invariance (iv) an example showing that CAPM-minded evaluators may incur arbitrage losses. The disequilibrium NPV should therefore be dismissed in investment decisions and valuations.
Author: Gerald A. Fleischer
Publisher:
Published: 1969
Total Pages: 320
ISBN-13:
DOWNLOAD EBOOKAuthor: Stylianos Perrakis
Publisher:
Published: 1978
Total Pages:
ISBN-13:
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