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Journal of Zhejiang University SCIENCE A 2004 Vol.5 No.5 P.499-508


The Q theory of investment, the capital asset pricing model, and asset valuation: a synthesis

Author(s):  MCDONALD John F.

Affiliation(s):  College of Business Administration, University of Illinois at Chicago, Chicago, USA

Corresponding email(s):   mcdonald@uic.edu

Key Words:  Investment theory, Asset pricing, Appraisal

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MCDONALD John F.. The Q theory of investment, the capital asset pricing model, and asset valuation: a synthesis[J]. Journal of Zhejiang University Science A, 2004, 5(5): 499-508.

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The paper combines Tobin's Q theory of real investment with the capital asset pricing model to produce a new and relatively simple procedure for the valuation of real assets using the income approach. Applications of the new method are provided.

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