The paper deals with two particular investment decisions: optimizing the investment date and opitmizing a single identical replacement. The objective is to maximize the net present value. For the common and convenient assumption of a flat term structure of inetrest rates, two results are known....

As a consequence of the suspicion that margin loans had been a key element of the stock market boom and crash in the late 1920s, the Federal Reserve Bank was empowered to regulate margin lending with the Securities and Exchange Act. However, there exists no formal rationale for the regulation of...