Abstract
In recent years several models have been developed in which the investment decision of the firm is analysed within the framework of portfolio theory. The basic premise of this theory as applied to the investment decision is that a project, if accepted, will be a new asset in the portfolio of assets held by the firm. Hence investment projects are not risk-independent. The stream of earnings of the new project is correlated with the stream of earnings of other investments already in existence or being considered for adoption. This interdependence should be taken explicitly into account when investment proposals are evaluated.
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© 1982 A. Koutsoyiannis
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Koutsoyiannis, A. (1982). Modern Theory of the Investment Decision Under Risk. In: Non-Price Decisions. Palgrave, London. https://doi.org/10.1007/978-1-349-16729-6_12
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DOI: https://doi.org/10.1007/978-1-349-16729-6_12
Publisher Name: Palgrave, London
Print ISBN: 978-0-333-26588-8
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