In depth analysis of Fisher model and explore its limitation

Ruichen Yan

doi:10.54691/bcpbm.v26i.1831

Authors

Ruichen Yan

DOI:

https://doi.org/10.54691/bcpbm.v26i.1831

Keywords:

fisher model, investment, capital market line, cash flow, rate of inflation, returns of stock.

Abstract

This paper shows how people develop the concept of time value of money or the interest rate in the financial market model, how to derive individual savings decisions from corporate investment decisions, and why the net present value rule applies to decision-making. Specifically analyze the relationship between capital market line and Fisher model. And based on the Chinese stock market to further study the Fisher model and show its role.

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References

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