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A Comment on the Albrecht Review of the Three Arguments Used to Justify Including a Risk-Premium in the Discount Factor

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Charles M. Linke. 2012. A Comment on the Albrecht Review of the Three Arguments Used to Justify Including a Risk-Premium in the Discount Factor
Journal of Legal Economics 19(1): 1-5

A Comment on the Albrecht Review of the Three Arguments Used to Justify Including a Risk-Premium in the Discount Factor

$25.00

Details

Gary Albrecht reviews the three arguments found in the literature for using a risk-adjusted discount rate to calculate the prese value of a worker’s future earnings. This comment addresses the error and misstatements contained in the discussion of Albrecht’s Table 1. Constant Return and Variable but Equal Return.

Additional Information

Authors Charles M. Linke
Classification Interest rates, Interest (Discount) Rates & PV

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