Can I read Market-Expected Return on Investment on EtoBox?

Market-Expected Return on Investment by Mauboussin is a nonfiction available to read on EtoBox.

What is Market-Expected Return on Investment about?

Corporate executives and active investors are both in the business ofallocating capital. The goal for each is to generate an attractive returnon investment. Companies create value when their investments earn areturn in excess of the opportunity cost of capital. Investors add valuewhen their portfolios generate a return higher than an appropriatemarket benchmark.Executives make investments in tangible and intangible assets overtime. Equity investors buy and sell stocks, which are essentially claimson a company’s cash flows after it pays all of its bills and makes all ofits investments. A company’s stock price reflects the expectations forfuture cash flows based on past, present, and prospective investments.Companies generally earn higher returns than investors do becausethey are making different investments. Companies continually invest inassets in order to create value in the business, while investors buy astock at a point in time in anticipation of revisions in expectations. In anefficient market, a company’s valuation accurately reflects theexpectations for value creation. Valuation differences equilibrate theexpected returns for companies of similar risk.

Who reads Market-Expected Return on Investment?

Author

Mauboussin

Published

2021

Language

EN

Category

nonfiction

Subjects

Business, Professional Finance