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Finally, Proof That Managing for the Long Term Pays Off

Harvard Business Review

Our long-term firms also appeared more willing to maintain their strategies during times of economic stress. The capital charge equals the amount of invested capital times the opportunity cost of capital — that is, the return that shareholders expect to earn from investing in companies with similar risk.

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Why Those Guys Won the Economics Nobels

Harvard Business Review

You have some physical understanding of the way in which the traffic is going to vibrate the bridge and cause stresses on the supports, but there’s a range of possible models of how much vibration the trucks are going to make. He draws on an engineering literature called robust optimal control. You have to say where it is exactly.

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