What question did this study set out to answer?

This article critiques the use of internal rate of return (IRR) models in multi-asset portfolios, emphasizing a firm-wide approach.

Present Value Models and the Multi-Asset Problem: A Comment.

View Full Paper

Ask AI

Bookmark

Authors

Comments highlight the necessity of using a firm's overall IRR for multi-asset valuation, indicating broader implications for accounting models.

This article critiques the use of internal rate of return (IRR) models in multi-asset portfolios, emphasizing a firm-wide approach.
Provided commentary on the work of Brief and Owen published in 1973.
Discussed the implications of using overall IRR versus individual asset IRRs.
Analyzed the linkage between accounting models and present value methods.
Confirmed that IRR is more effective as a firm-wide model than as a single-asset model.
Suggested that accounting practices need to reflect expected income accurately across a total portfolio.
Highlighted that traditional present value methods may not fully account for portfolio complexities.

Stephen L. Meyers (1974) studied this question.

View Full Paper

Ask AI

Bookmark

Comments highlight the necessity of using a firm's overall IRR for multi-asset valuation, indicating broader implications for accounting models.