MODELS FOR APPRAISING INVESTMENTS YIELDING STOCHASTIC RETURNS,
Abstract
Stochastic models for return on investment when ruin may occur are treated. However, this model recognizes the possibility that one organization will not necessarily continue forever in one form, subsisting on a single enterprise or project. Rather, alert organizations will develop replacements of current profit-making enterprises in anticipation either of damaging adverse business fluctuations or of a sudden catastrophic change in economic climate, such as is caused by competitive innovations. If a replacement is at hand when profits from the current enterprise cease, withdrawals may continue. Some models for describing and evaluating such a replacement process are suggested. (Author)
Document Details
- Document Type
- Technical Report
- Publication Date
- Mar 01, 1964
- Accession Number
- AD0436459
Entities
People
- D. P. Gaver Jr.
Organizations
- Carnegie Institute of Technology