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Term-Risk Structures and the Valuation of Projects

Published online by Cambridge University Press:  06 April 2009

Uri Dothan  and
Joseph Williams
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Extract

Among the many financial problems facing managers of firms, capital budgeting problems are often the most important. Over the years these problems have received considerable attention from financial economists with more recent work emphasizing two separate approaches. One currently popular approach to capital budgeting is based on the simple linear relationship between risk and return from the intertemporal capital asset pricing model (CAPM) of Merton [20]. Papers in this category include Brennan [7], Bogue and Roll [4], Treynor and Black [26], Myers and Turnbull [21], Fama [15], Bhattacharya [2], and Constantinides [9].

Type
The Term Structure of Interest Rates and the Pricing of Fixed Rate Securities
Information
Journal of Financial and Quantitative Analysis , Volume 15 , Issue 4 , November 1980 , pp. 875 - 905
Copyright
Copyright © School of Business Administration, University of Washington 1980

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References

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