Project valuation using state contingent claims

Authors

  • Martin Lally

Keywords:

project valuation, state contingent claims

Abstract

This paper shows that the Banz and Miller framework for project valuation, using matrices of state contingent claim prices, is valid only if expectations of future payoffs are not revised. The appropriate general framework when such expectations are revised is then presented, followed by a computationally simpler version.

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Published

1992-01-01

How to Cite

Lally, M. (1992). Project valuation using state contingent claims. School of Management Working Papers, 1–13. Retrieved from https://ojs.victoria.ac.nz/somwp/article/view/7168