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Author
Kaganov Vitaly (Poznań University of Economics and Business, Poland)
Title
Theoretical Framework for Stock Pricing Process Based on Micro-Economic Decision Model
Source
Research Papers in Economics and Finance, 2017, vol. 2, nr 2, s. 29-37, bibliogr. 35 poz.
Keyword
Modele podejmowania decyzji, Ceny, Wycena aktywów
Decision-making models, Prices, Asset valuation
Note
summ.
Abstract
The most common model for asset pricing (CAPM) is problematic and does not match the reality. In this article, I introduce a theoretical framework for a new model which aims at avoiding the problems of CAPM and keeping its advantages, therefore allowing universality of asset pricing. The model is built on the economic principles, using a budget constraint and a Risk Appetite (RA) function. It is based on the micro-economic decision model, involving an expected value and dividing a stock price to objective and subjective prices. As a result, rational based individuals, just like individuals with non-rational factors, may use the model to calculate a future price stock in exactly the same way.(original abstract)
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Bibliography
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ISSN
2543-6430
Language
eng
URI / DOI
http://dx.doi.org/10.18559/ref.2017.2.4
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