Several accountants have previously pointed out some of the inherent conflicts that exist among the seven qualitative objectives of financial accounting identified by the Accounting Principles Board in Statement No. 4.' It is not the intention of this study to pursue this topic in its entirety. Rather, only relevance-considered by the APB to be the primary objective of financial accounting-and are discussed here. And this study seeks to establish the complementary nature of these two concepts, rather than to point out conflicts between them. The interdependency of the relevance and understandability objectives can best be illustrated by examining the meanings of these terms as used by the Board: Relevance. Relevant financial accounting bears on the economic decisions for which it is used. (para. 88) Understandability. Understandable financial accounting presents data that can be understood by the users of the and is expressed in a form and with terminology adapted to the users' range of understanding. (para. 89) It should be noted that Statement No. 4 does not distinguish between the terms information and data. In and communication theory, exists only if the datum: (1) is relevant (i.e., reduces the amount of uncertainty associated with a decision), and (2) is understood (i.e., it is correctly deciphered by the observer [user] of the datum). If we substitute datum for in the definition of relevance,

Book review

Single-period portfolio selection deals with the allocation of an investor's initial wealth to a finite number of risky assets according to his preferences over random final wealth. The purpose of this paper is to study chance-constrained portfolio selection from the point of view of utility theory.

Intergenerational Equity and Exhaustible Resources Get access R. M. Solow R. M. Solow Massachusetts Institute of Technology Search for other works by this author on: Oxford Academic Google Scholar The Review of Economic Studies, Volume 41, Issue 5, December 1974, Pages 29–45, https://doi.org/10.2307/2296370 Published: 01 December 1974

For many years, the stock option has been an investment device used primarily by speculators and some “sophisticated” investors. During the past few years, much more attention has been paid to options by mutual funds, insurance companies, and conservative investors who previously showed little concern for this investment alternative. The opening of the Chicago Board of Trade's exchange for the trading of options will lead to even wider interest in the area.

This paper examines the validity of two widely used methods for forming conditional predicted portfolio returns. The first method relies on a one-period, mean-variance theory of equilibrium expected return, sometimes referred to as the “capital asset pricing model” (CAPM). The second method is based upon a proposal by Markowitz [14] and is called the [market model] (MM).

Role of uncertainty, 625 — The leisure trade-off, 629.

I. Introduction, 19. — II. A model of Black housing consumption, 21. — III. Empirical estimates, 24. — IV. Improving Black housing conditions: concluding observations, 36. — Appendix, 40.

Introduction, 520. — Structural bias and relative backwardness: a proposed measurement, 522. — Conclusions, 525. — Appendix, 526.