In late March the release of data on sale of new homes in the US showed that it had dropped 10 per cent, the biggest drop in nine years. In the immediate aftermath of this report, the US currency gave up some ground against the Euro and other major currencies. Bond yields dropped and rate hike...

This paper develops a valuation formula for multi-period stochastic cash flows consistent with rational risk-averse investor behavior and equilibrium in securities markets. It shows that the CAPM does not have to be sequentially applied in discounting of the cash flows of multi-period projects,...