Information systems, Decision making, Lab experiment

In a recent article appearing in this journal [2] Jonathan Ingersoll developed a normative multidimensional security pricing model for the individual investor in which he corrected errors in an earlier attempt by William Jean [3] [4] [5] at developing such a model. The purpose of this correction is to clarify and correct certain parts of Ingersoll's correction of Jean's work.

Guilford C. Babcock, Comment: Duration and Bond Portfolio Analysis, The Journal of Financial and Quantitative Analysis, Vol. 13, No. 4, Proceedings of Thirteenth Annual Conference of the Western Finance Association, June 20-26, 1978 (Nov., 1978), pp. 683-685

One of the innovative and successful new markets developed in recent years has been the registered exchange for the trading of option contracts. Key innovations provided by the option exchanges include the standardization of some contractual terms and the creation of a central clearing corporation to serve as issuer and obligor of each option contract, thus severing the contractual link between a specific option writer and buyer. These changes have facilitated the trading of existing call options in the secondary market and have provided increased liquidity, continuous public reporting of prices, better information on trading volume and open positions, and reduced transaction costs.

As the multinational corporation (MNC) becomes the norm rather than the exception, the need to internationalize the tools of domestic financial analysis is apparent. A key question is: What cost-of-capital figure should be used in appraising the profitability of foreign investments? This paper seeks to provide a comprehensive approach to analyze the cost-of-capital question. It begins by extending the weighted cost-of-capital concept to the multinational firm. It then builds on previous research to address the following related topics: national or multinational financial structure norms; the role of parent company guarantees; the costing of various fund sources particularly when exchange risk is present; the impact of tax and regulatory factors; risk and diversification; and joint ventures.

Journal Article Growth Accounting with Intermediate Inputs Get access Charles R. Hulten Charles R. Hulten Urban Institute, Washington D.C. Search for other works by this author on: Oxford Academic Google Scholar The Review of Economic Studies, Volume 45, Issue 3, October 1978, Pages 511–518, https://doi.org/10.2307/2297252 Published: 01 October 1978 Article history Received: 01 May 1976 Accepted: 01 August 1977 Published: 01 October 1978

Journal Article The Optimal Exploitation of an Unknown Reserve Get access Glenn C. Loury Glenn C. Loury Northwestern University Search for other works by this author on: Oxford Academic Google Scholar The Review of Economic Studies, Volume 45, Issue 3, October 1978, Pages 621–636, https://doi.org/10.2307/2297264 Published: 01 October 1978 Article history Received: 01 November 1976 Accepted: 01 October 1977 Published: 01 October 1978

Journal Article On the Dynamic Behaviour of the Consumer and the Optimal Provision of Social Security Get access Sheng Cheng Hu Sheng Cheng Hu Purdue University Search for other works by this author on: Oxford Academic Google Scholar The Review of Economic Studies, Volume 45, Issue 3, October 1978, Pages 437–445, https://doi.org/10.2307/2297246 Published: 01 October 1978 Article history Received: 01 October 1976 Accepted: 01 June 1977 Published: 01 October 1978

This article re-examines the magnitude of stockholder gains from merger. To measure stockholder gains we employ four alternative two-factor market-industry models in combination with a matched non-merging control group. The four two-factor models are based on either the capital asset pricing model or Black's (1972) zero-beta model combined with two alternative industry factors. The four models are shown to produce generally consistent results. However, the results from a two-factor model are sometimes different from the results of a simpler one-factor model. Also, the introduction of a third factor, the non-merging control group, is shown to have a substantial impact on performance measurement.

C. Henry, A. Zylberberg; Planning Algorithms to deal with Increasing Returns, The Review of Economic Studies, Volume 45, Issue 1, 1 February 1978, Pages 67