Accession Number : AD0783018
Title : Structure Stock Valuation Models.
Descriptive Note : Technical rept.,
Corporate Author : STANFORD UNIV CALIF DEPT OF OPERATIONS RESEARCH
Personal Author(s) : Kreps,David M.
Report Date : 31 MAY 1974
Pagination or Media Count : 58
Abstract : The classic valuation theory for stocks is considered from the point of view that investors systematically predict the future based on currently available financial data and therefore current stock prices should be a function of these data. Within the context of an idealized market for a single security, a general model of investor predictions is created that specifies how investors predict the future given the past. In this model, investors do not predict future prices because those prices will be determined by their own actions. Instead, they anticipate what their actions will be, establishing a price scheme or a specification of what prices will be in every conceivable present and future situation. (Modified author abstract)
Descriptors : *Finance, *Investments, Mathematical models, Statistical processes, Theorems
Subject Categories : Economics and Cost Analysis
Distribution Statement : APPROVED FOR PUBLIC RELEASE