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The Duration of a Mixed Stream Comprising Positive and Negative Flows
Author(s) -
Ma Ronald,
Ziji Tony
Publication year - 1986
Publication title -
accounting and finance
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.645
H-Index - 49
eISSN - 1467-629X
pISSN - 0810-5391
DOI - 10.1111/j.1467-629x.1986.tb00081.x
Subject(s) - duration (music) , measure (data warehouse) , mathematics , statistics , stream flow , econometrics , computer science , geography , data mining , cartography , physics , acoustics , drainage basin
This paper shows how the duration measure of a mixed stream comprising positive and negative flows can be derived, and its property as an index of interest elasticity is illustrated. It is shown that Durand's [1974] measure of the duration of a mixed stream is incorrect. Blocher and Stickney [1979], following Durand, used duration measures, some of which relate to mixed streams, in assessing illiquidity risk in capital budgeting. This aspect of their analysis is suspect.