Harvard Business Review

MARCH 10, 2011

Estimating the rate at which to discount the cash flows — the cost of equity capital — is an integral part of the exercise, and the choice of rate has a significant effect on estimates of a project's or a company's value. Not at all, he said, because it's "no secret that applying the CAPM is as much an art as financial science."

CAPM 14

CAPM Cost Discounted Cash Flow Cost of Capital 14

Harvard Business Review

JANUARY 15, 2014

How you answer this question may be the most important factor in how you design your product development process — and, ultimately, in whether your business succeeds or fails. An easy way to begin addressing the problem is to examine the accuracy of your projections. Product development'

Black-Scholes 8

Black-Scholes Productivity Products CAPM 8

Harvard Business Review

APRIL 2, 2014

Campbell’s work has also made liberal use of the analytic tools developed by Hansen. Back in the ‘60s, people developed the capital asset pricing model [CAPM] as a way to do that. And the theory that was available then was CAPM. One can distinguish between what we call time series models and cross-sectional models.

CAPM 8

CAPM Discount Price Finance 8

Harvard Business Review

MARCH 10, 2011

Many are deeply uncertain about which initiatives they should fund — and one root of this indecision is a general lack of confidence in the cost of capital projections they are using to make the call. More than one-third of organizations forecast explicit cash flows for the first 10 years of a project. What's holding them back?

Cost of Capital 13

Cost of Capital CAPM Cost Discounted Cash Flow 13