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NBER WORKING PAPER SERIES Hanno Lustig Yi-Li Chien
NBER WORKING PAPER SERIES Hanno Lustig Yi-Li Chien

... of risk and interest rates are i.i.d. over time when aggregate consumption growth is i.i.d. over time. This version of the model does not contribute any dynamics endogenously. As a result, the standard deviation of stock returns is obviously much too small in this two-agent model, since there is no ...
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... investor. Theories and models indentifying risk factors such as risks towards the behavior of information (information asymmetry), risk attitude of users and developers are applied. Models that analyze profit; traditional valuation models, discounted cash flow and economic value added models are als ...
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... 1 Introduction Conventional wisdom in financial planning holds that an individual’s exposure to higher-risk assets, like stocks, should decline as his or her retirement date nears. As Jagannathan and Kocherlakota (1996) note, the rationale for this tenet usually rests on three assumptions: (i) stock ...
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Business valuation

Business valuation is a process and a set of procedures used to estimate the economic value of an owner’s interest in a business. Valuation is used by financial market participants to determine the price they are willing to pay or receive to effect a sale of a business. In addition to estimating the selling price of a business, the same valuation tools are often used by business appraisers to resolve disputes related to estate and gift taxation, divorce litigation, allocate business purchase price among business assets, establish a formula for estimating the value of partners' ownership interest for buy-sell agreements, and many other business and legal purposes such as in shareholders deadlock, divorce litigation and estate contest. In some cases, the court would appoint a forensic accountant as the joint expert doing the business valuation.
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