What question did this study set out to answer?

This paper critiques and synthesizes probabilistic methods for evaluating return on investment (ROI) and residual income (RI).

Probabilistic Approaches to Return on Investment and Residual Income.

View Full Paper

Ask AI

Bookmark

Authors

Methodologically critiques various probabilistic approaches to ROI and RI, indicating their practical implications.

This paper critiques and synthesizes probabilistic methods for evaluating return on investment (ROI) and residual income (RI).
Synthesized various probabilistic approaches to ROI and RI.
Assessed normality of underlying variables.
Discussed simulation and its alternatives.
Evaluated the applicability of goodness-of-fit tests.
RI is deemed more versatile than ROI under normal conditions.
Probability intervals can be analytically derived for RI.
In complex cases, simulation provides data for probability intervals.
High, medium, and low estimates for ROI and RI are viable alternatives.

William L. Ferrara (1977) studied this question.

View Full Paper

Ask AI

Bookmark