Discounting rules for risky assets
This paper develops a rule for calculating a discount rate to value risky projects. The rule assumes that the asset risk can be measured by a single index (e.g., beta), but makes no other assumptions about specific form of the asset pricing model. The rule works for all equilibrium theories of...
| Main Authors: | , |
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| Format: | Working Paper |
| Language: | en_US |
| Published: |
MIT Energy Lab
2005
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| Online Access: | http://hdl.handle.net/1721.1/18196 |