What question did this study set out to answer?

The paper replies to critiques of the present value models, particularly addressing the reinvestment problem in multi-asset scenarios.

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

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Authors address critiques regarding reinvestment issues in multi-asset internal rate of return calculations.

The paper replies to critiques of the present value models, particularly addressing the reinvestment problem in multi-asset scenarios.
Presented a response to the criticism of their previous article.
Discussed the implications of reinvestment on internal rate of return calculations.
Analyzed the relationship between portfolio rate of return and single-asset IRR models.
Confirmed that portfolio and firm rates of return can be interpreted similarly under reinvestment assumptions.
Reiterated that internal rate of return is suitable as a firm model rather than a single-asset model.
Highlighted that monetary assets should not affect internal rate of return calculations.

Brief et al. (1974) studied this question.

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