IFT_Chapt2_sli - Introduction 2.1 The key question how to value a cash ow 2.2 Discounting a risky cash ow 2.3 fundamental approaches Roadmap

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Introduction 2.1 The « key » question: how to value a cash flow? 2.2 Discounting a risky cash flow 2.3 fundamental approaches Roadmap Intermediate Financial Theory Chapter II. The Challenge of Asset Pricing: A Roadmap June 26, 2006 Intermediate Financial Theory
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Introduction 2.1 The « key » question: how to value a cash flow? 2.2 Discounting a risky cash flow 2.3 fundamental approaches Roadmap A Roadmap « The ideas of economists and political philosophers . . are more powerful than commonly understood. Indeed the world is ruled by little else. Madmen in authority, who hear voices in the air, are distilling their frenzy from some academic scribbler of a few years back. » J.M. Keynes Intermediate Financial Theory
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Introduction 2.1 The « key » question: how to value a cash flow? 2.2 Discounting a risky cash flow 2.3 fundamental approaches Roadmap Table 2.1 : Valuing a Risk-Free Cash Flow t = 0 t = 1 t = 2 t = T - 3 mio 1 mio 2 mio 3 mio 1 mio ( 1 + r f 1 ) 1 mio ( 1 + r f 2 ) 2 1 mio ( 1 + r f 3 ) 3 $1 dollar today 6 = $1 dollar tomorrow Intermediate Financial Theory
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This note was uploaded on 01/29/2012 for the course ECONOMICS 101 taught by Professor Tikk during the Spring '11 term at University of Toronto- Toronto.

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IFT_Chapt2_sli - Introduction 2.1 The key question how to value a cash ow 2.2 Discounting a risky cash ow 2.3 fundamental approaches Roadmap

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