Lajos Juhász Institute of Corporate Economics Faculty of Economics NET PRESENT VALUE VERSUS INTERNAL RATE OF RETURN University of West Hungary [email protected] ABSTRACT. The economic professional literature which deals with investment decisions can be characterised in general that the net present value shows objective picture for the decision maker while the internal rate of return – not...

The statistical properties of the total yield are analyzed for an assembly of gamblers in an erratic period on the Budapest stock exchange. Random trading results in a log-normal limit distribution of a surprisingly large width, while the simplest profit realizing strategy narrows down the peak around a positive average value. The effect of transaction costs, the statistics of extremes, and pat...

This paper develops a theory of investment and maturity choices and studies its implications for the macroeconomy. The novel ingredient is an explicit secondary market with trading frictions which leads to a liquidity spread which increases with maturity and generates an upward sloping yield curve. As a result, trading frictions induce firms to borrow and invest at shorter horizons than in a fr...

This paper examines the predictive power of credit spreads from the corporate bond market. The high-yield bond spread and investment-grade spread can explain 68 per cent and 42 per cent of output variations one year ahead, while the term spread based on government debts can explain only 12 per cent of them. For output forecasts up to one year ahead, the corporate bond spreads also outperform po...

This paper studies the capacity investment decisions of an agri-processor that uses a commodity input to produce a commodity output and a byproduct. Using a multiperiod model, we study the one-time processing and (output) storage capacity investment decisions, and the periodic processing and inventory decisions in the presence of input and output spot price uncertainties and uncertain productio...

The research at University College London School of Medicine (UCLSM) is supported by the Wellcome Trust, Action Research, the Special Trustees of University College Hospital, and the Muscular Dystrophy Group of Great Britain. The studies have been carried out with the assistance of Dr. P. S. Tofts, Mr. D. Delpy and Mr. A. Chu of the Department of Medical Physics (UCLSM), and Mr. N.Taylor of Kin...

System-initiated digressive proposals may be used to introduce new and unexpected information into automated telephone services. These digressions may be viewed as particularly pronounced forms of unsolicited interruptions as they contain information not directly related to the caller’s intended activity. In human–human conversation, interruptions are considered to be speech acts which intrinsi...

In 1981, Paris and Wilkie [28] indicated it was an open question whether IΣ0 would satisfy the Second Incompleteness Theorem for Herbrand deduction. We will show that some specially formulated axiomizations for IΣ0 can evade the Herbrandized version of the Second Incompleteness Theorem.

This paper considers a multi-objective portfolio selection problem imposed by gaining of portfolio, divided yield and risk control in an ambiguous investment environment, in which the return and risk are characterized by probabilistic numbers. Based on the theory of possibility, a new multi-objective portfolio optimization model with gaining of portfolio, divided yield and risk control is propo...