capital, where the latter depends on the project’s disequilibrium systematic risk. It is shown that the disequilibrium net …) an example showing that CAPM-minded evaluators may incur arbitrage losses …

disequilibrium NPV for decision-making is deductively drawn from the CAPM, its use for both valuation and decision should be rejected. …This paper shows that a decision maker using the CAPM for valuing firms and making decisions may contradict Modigliani … and Miller’s Proposition I, if he adopts the widely-accepted disequilibrium NPV. As a consequence, CAPM-minded agents …

disequilibrium NPV for decision-making is deductively drawn from the CAPM, its use for both valuation and decision should be rejected. …This paper shows that a decision maker using the CAPM for valuing firms and making decisions may contradict Modigliani … and Miller’s Proposition I, if he adopts the widely-accepted disequilibrium NPV. As a consequence, CAPM-minded agents …

Present Value and the disequilibrium Net Future Value may be used for valuation, given that they are additive. However … from this model: the disequilibrium Net Present Value, the equilibrium Net Present Value, the disequilibrium Net Future …, despite their additivity, the latter are not always reliable metrics, because they do not signal arbitrage opportunities …

capital, where the latter depends on the project’s disequilibrium systematic risk. It is shown that the disequilibrium net …) an example showing that CAPM-minded evaluators may incur arbitrage losses. …

This paper shows that (i) project valuation via disequilibrium NPV+CAPM contradicts valuation via arbitrage pricing …, (ii) standard CAPM-minded decision makers may fail to profit from arbitrage opportunities, (iii) standard CAPM …-based valuation violates value additivity. As a consequence, the standard use of CAPM for project valuation and decision making should …

contained collection of a "baker's dozen" consistent CAPM-related methods, that all give correct valuation results. The models … include approaches based on certainty equivalents, equilibrium and disequilibrium required discount rates, simplified … valuation methods consistent with correct CAPM procedures. Additional issues and relations related to different betas are also …