are open to framing effects and to arbitrage losses, which imply violations of Modigliani and Miller's Proposition I. The …

) the disequilibrium NPV does not guarantee additivity nor consistency with arbitrage pricing, so that it is unreliable for … arbitrage losses and incorrect decisions. …

disequilibrium values, is at odds with arbitrage theory, and that the corresponding CAPM-based NPV rule is meaningless even in the …, leaves decision makers open to arbitrage losses, because it is an (admittedly interesting) reframing of the security market … lineand (as surprising as it might be) the use of the SML for project valuation is incompatible with the no-arbitrage …

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 …

employing this NPV are open to arbitrage losses and miss arbitrage opportunities. As a result, even though the use of the …

) an example showing that CAPM-minded evaluators may incur arbitrage losses …

employing this NPV are open to arbitrage losses and miss arbitrage opportunities. As a result, even though the use of the …

), the theory is enfolded in Keynes's (1936) notion of user cost and is naturally generated by an arbitrage …