An Elasticity Approach to Equity Risk Evaluation

Larry J. Johnson (), James L. Kuhle and Carl H. Walther
Additional contact information
Larry J. Johnson: College of Business Administration University of Tulsa 600 South College Tulsa, Oklahoma 74104, http://www.cba.uc.edu/dept/fin/
James L. Kuhle: College of Business Administration California State University, Sacramento Sacrameneto, California 95819, http://www.csus.edu/sba/
Carl H. Walther: College of Business Administration California State University, Sacramento Sacrameneto, California 95819, http://www.csus.edu/sba/

Journal of Real Estate Research, 1987, vol. 2, issue 1, 41-49

Abstract: This study defines and derives a measure of risk for real estate investment decisions using the concept of elasticity. Specifically, the elasticity of the after-tax equity yield with respect to the before-tax net operating cash flow growth rate is derived from a discounted cash flow equity valuation model. Also, an illustration of the use and interpretation of this elasticity measure is provided.

JEL-codes: L85 (search for similar items in EconPapers)
Date: 1987
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Citations: View citations in EconPapers (1)

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