Risk, Duration, and Capital Budgeting: New Evidence on Some Old Questions.
In a provocative article John Y. Campbell and Jianping Mei (1993) suggest that systematic risk arises not because of correlation between a company's cash flow and the market return but primarily because of common variation in expected returns. If true, the Campbell-Mei hypothesis has important implications for capital budgeting, particularly at high-technology companies that have long duration, idiosyncratic investment projects. This article presents some new evidence related to the Campbell-Mei hypothesis and then evaluates the impact of the hypothesis with a case study of Amgen Corporation. Copyright 1999 by University of Chicago Press.
Year of publication: |
1999
|
---|---|
Authors: | Cornell, Bradford |
Published in: |
The Journal of Business. - University of Chicago Press. - Vol. 72.1999, 2, p. 183-200
|
Publisher: |
University of Chicago Press |
Saved in:
Online Resource
Saved in favorites
Similar items by person
-
The Money Supply Announcements Puzzle: Review and Interpretation.
Cornell, Bradford, (1983)
-
Money Supply Announcements and Interest Rates: Another View.
Cornell, Bradford, (1983)
-
The relationship between volume and price variability in futures markets
Cornell, Bradford, (1981)
- More ...