haku: @indexterm Discount rate / yhteensä: 136
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| Tekijä: | Butler, J. S. Schachter, B. |
| Otsikko: | The investment decision: Estimation risk and risk adjusted discount rates. |
| Lehti: | Financial Management
1989 : WINTER, VOL. 18:4, p. 13-22 |
| Asiasana: | INVESTMENT PLANNING ESTIMATION RISK ANALYSIS DISCOUNT RATE CAPITAL BUDGETING |
| Kieli: | eng |
| Tiivistelmä: | Presentation of methods to eliminate bias in capital budgeting decisions made in the presence of estimation risk, when ignoring this risk in risk adjusted discount rates /RADR/ causes overvaluation of project cash flows. Two methods are presented for dealing with RADR estimation risk. Biased present value estimated. Illustration of the magnitude of the bias. Correcting for the estimation risk induced bias. Ad hoc and options-based approaches. Analytical expectations and numerically evaluated expectations. Three Exhibits and two Appendices illustrate the study. |
SCIMA