HIGHLIGHTS The chronic riddle in the Nobel Prize winning CAPM, solved Liquidity threat in WACC & NPV, explained EVA's weakness explained; new 'Value Creation Index' introduced Over 100 figures & tables; over 30 authoritative references
The next global financial crisis could be only a tick away. Despite more than five decades of worldwide research, the following comments made by the Nobel Prize committee in its scientific background note to the 2013 Prize in Economic Sciences, only confirms that the world continues to sit on a financial time-bomb, and warns of the inevitable imminent disaster.
“...we do not yet have complete and generally accepted explanations for how financial markets function..."
“...we do not yet fully understand how asset prices are determined..."
"...currently no widely accepted 'consensus (asset pricing) model' exists..."
"Mispricing of assets may contribute to financial crises and, as the recent recession illustrates, such crises can damage the overall economy”
To put it briefly, this book - based on a ground breaking research - bares and fixes serious, deeply hidden flaws in financial science and shows how the world's most dreaded, chronic and painful illness can be permanently cured.
If you have money at stake - whether your own or otherwise - in the ocean of financial assets, take this book as your only lifeline.
Do send in your responses and questions to : firstname.lastname@example.org
Table of contents
- One Decade, Three Crises
- The Hypotheses
- Anatomy of a Crisis
- A Fatal Communication Error
- The Role of ‘Beta’ in Corporate Finance
- Breaking The CAPM Mystery
- From Portfolio Theory to CAPM: A Heuristic Slip?
- Models Deceive, Cash Flows Don’t
- WACC violates the WYDIWYP Principle
- If Archimedes Was an Economist
- Value Centric Capital Budgeting
- A Word on Pay Back Methods
- Measuring Value
- Financial Decision Making Standards