Abstract
Abstract : Ideas from Chance-Constrained (C2) Programming and Linear Programming under uncertainty (LPUU) are combined as part of an exploration in approaches to capital budgeting under risk which are likely to be more operational than those which are available in the form of a supposed prior characterization via utility functions, etc. Two types of risk are considered via payback and liquidity constraints which are designed to handle, respectively, economic risks in the sense of lost opportunity risks as well as accounting risks in the sense of actually realized loss possibilities. The concept of an 'horizon posture' is also introduced and elaborated via normal (and related) distributions and the zero-order rules of C2 programming. (Author)
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