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CAPM-based capital budgeting and nonadditivity

Magni, Carlo Alberto
Munich Personal RePEc Archive · Reports
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This paper deals with the CAPM-derived capital budgeting criterion, and in particular with Rubinstein’s (1973) criterion, according to which a project is profitable if the project rate of return is greater than the risk-adjusted cost of capital, where the latter depends on the project’s disequilibri
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