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A Note on Indices of Return

Author

Listed:
  • Aleksandr Alekseev
  • Mikhail Sokolov

Abstract

Axiomatic derivations of the rate of return and its generalizations to nonexponential discounting and in the presence of inflation are given by elementary methods.

Suggested Citation

  • Aleksandr Alekseev & Mikhail Sokolov, 2011. "A Note on Indices of Return," EUSP Department of Economics Working Paper Series 2011/02, European University at St. Petersburg, Department of Economics, revised 21 Feb 2011.
    • Handle: RePEc:eus:wpaper:ec2011_02
    as

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    File URL: https://eusp.org/sites/default/files/archive/ec_dep/wp/ec-02_11.pdf
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    References listed on IDEAS

    as
    1. Arrow, Kenneth J & Levhari, David, 1969. "Uniqueness of the Internal Rate of Return with Variable Life of Investment," Economic Journal, Royal Economic Society, vol. 79(315), pages 560-566, September.
    2. Kenneth B. Gray, Jr. & Robert B. K. Dewar, 1971. "Axiomatic Characterization of the Time-Weighted Rate of Return," Management Science, INFORMS, vol. 18(2), pages 32-35, October.
    3. Daniel Teichroew & Alexander A. Robichek & Michael Montalbano, 1965. "An Analysis of Criteria for Investment and Financing Decisions Under Certainty," Management Science, INFORMS, vol. 12(3), pages 151-179, November.
    4. David Promislow, S. & Spring, David, 1996. "Postulates for the internal rate of return of an investment project," Journal of Mathematical Economics, Elsevier, vol. 26(3), pages 325-361.
    5. George Loewenstein & Drazen Prelec, 1992. "Anomalies in Intertemporal Choice: Evidence and an Interpretation," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 107(2), pages 573-597.
    6. Daniel Teichroew & Alexander A. Robichek & Michael Montalbano, 1965. "Mathematical Analysis of Rates of Return Under Certainty," Management Science, INFORMS, vol. 11(3), pages 395-403, January.
    7. Cantor, David G & Lippman, Steven A, 1983. "Investment Selection with Imperfect Capital Markets," Econometrica, Econometric Society, vol. 51(4), pages 1121-1144, July.
    8. Bleichrodt, Han & Rohde, Kirsten I.M. & Wakker, Peter P., 2009. "Non-hyperbolic time inconsistency," Games and Economic Behavior, Elsevier, vol. 66(1), pages 27-38, May.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    rate of return; yield; investment project; axiomatic approach;
    All these keywords.

    JEL classification:

    • G11 - Financial Economics - - General Financial Markets - - - Portfolio Choice; Investment Decisions

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