Share repurchases have grown rapidly in recent years, frequently exceeding total cash dividends since 1997. Some analysts have argued that incorporating repurchases into a discounted cash flow framework leads to higher equity valuations and expected return estimates and, further, that...

This paper presents three definitions of time diversification and analyzes their implications for investment horizons. Using decision quality criteria and methodology, we question standard advice. In analyzing time diversification with a minimum of assumptions, we answer two main questions: how...