22. Lower Risk and Higher Returns: Linking Stable Paretian Distributions and Discounted Cash Flow

  1. Rawley Thomas and
  2. Benton E. Gup
  1. Rawley Thomas,
  2. Dandan Yang2 and
  3. Robert J. Atra3

Published Online: 6 DEC 2011

DOI: 10.1002/9781118268179.ch22

The Valuation Handbook: Valuation Techniques from Today's Top Practitioners

The Valuation Handbook: Valuation Techniques from Today's Top Practitioners

How to Cite

Thomas, R. and Gup, B. E. (2009) Lower Risk and Higher Returns: Linking Stable Paretian Distributions and Discounted Cash Flow, in The Valuation Handbook: Valuation Techniques from Today's Top Practitioners, John Wiley & Sons, Inc., Hoboken, NJ, USA. doi: 10.1002/9781118268179.ch22

Author Information

  1. 2

    President's Research Associate, LifeCycle Returns, Inc.

  2. 3

    Chair of the Finance Department, Lewis University

Publication History

  1. Published Online: 6 DEC 2011
  2. Published Print: 19 OCT 2009

ISBN Information

Print ISBN: 9780470385791

Online ISBN: 9781118268179

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Keywords:

  • stable paretian distributions;
  • financial markets;
  • discounted cash flow;
  • U.S. stock market;
  • security returns

Summary

This chapter contains sections titled:

  • Background

  • Intrinsic Values and Distributions

  • Automated Valuation Models

  • Research Design and Empirical Results

  • Conclusion

  • Appendix A: Synthesizing the LifeCycle Framework

  • Appendix B: Technical Note—Ranges of Bounded Rationality

  • Notes

  • References