The CML (Capital Market Line), the Intertemporal-CAPM, the CAPM/SML (Security Market Line) and the Intertemporal Arbitrage Pricing Theory (IAPT) are major elements of modern finance, and are widely used in portfolio management, valuation and capital markets financing. However, these theories are...

Investment Decision Analysis using NPV and or the Mean-Variance Model has become the primary method of investment evaluation. However, these approaches are deeply flawed and are very sensitive to the time horizon, the signs of the periodic cash flows, and discount rates that exceed 100% or are...

This book explores why Internal Rate of Return (IRR) and Net Present Value (NPV) are not necessarily accurate or efficient tools for valuation and decision-making. The author specifically addresses the discounting biases and framing effects inherent in the NPV/MIRR/IRR model and in related...