 The Risk and Time Value of MoneyArmen V. Papazian ()
Chapter Chapter 2 in Hardwiring Sustainability into Financial Mathematics, 2023, pp 11-27 from Springer Abstract: Abstract This chapter discusses our current financial value paradigm and analytical framework built around risk and time parameters, serving one stakeholder, the mortal risk-averse return-maximising investor. Our current value framework in finance theory and practice is structured around two principles of value, risk and return, and time value of money. These principles discriminate against our evolutionary investments given their internal biases towards highly risky and very distant cash flows. Furthermore, the discussion identifies a missing analytical dimension in finance, i.e., space, our physical context, and reveals spaceless equations, often focused on future non-actual expected cash flows, while omitting the actual space impact it would take to achieve or expect them. Thus, sustainability in finance must surely address these omissions and make room for planet and humanity as equal stakeholders in the value and return equations that have shaped our markets and investments for the last many decades. Keywords: Sustainability; Financial mathematics; Money; Value; Risk; Time; Space; Impact (search for similar items in EconPapers) There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it. Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:spr:sprchp:978-3-031-45689-3_2 Ordering information: This item can be ordered from DOI: 10.1007/978-3-031-45689-3_2 Access Statistics for this chapter More chapters in Springer Books from Springer |
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