Pragmatic-world nominal riskless rates are non-negative. However, conventional arbitrage theory has yet to develop a theoretical justification of this phenomenon. – We define the null-alternative cash as an investor holding onto cash and refraining from investment and consumption ("doing...

Sustainable investment projects, such as those envisioned within the United Nations’s Sustainable Development Goals, are impossible without sustainable financing, which in turn can only be secured if investors have long-term trust in these projects. Trust problems are severe for private...

Cost of capital is the most important aspect for investors when deciding to invest in ESG stocks. Against this background there is a puzzle in the ESG literature. When formulating hypotheses or in-terpreting empirical findings, empirical ESG cost of capital papers use economic interpretations...