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Working paper
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Description

A performance evaluation approach is developed to support long-term investment programs, where asset selection is based on the internal rate of return estimated with reference to long-term cash flows. Returns are attributed into three components reflecting expected return, changes in discount rates, and changes in expected cash flows. Evaluating performance in this manner focuses attention on the key driver of long-term returns: cash flows generated over the long run, relative to the price paid.

Publication Details
DOI:
10.4225/50/583e402ba3baa
Access Rights Type:
open