Abstract
Stochastic discounting models have been widely adopted in many practical disciplines. In particular, the contribution of these models to the development of risk management as an organizational discipline has been proved very important. This paper is mainly devoted to the formulation, practical applications and investigation of a stochastic discounting model. More precisely, a stochastic discounting model for the present value of a continuous uniform cash flow, incorporating some fundamental concepts of probability theory, is formulated. Applications of the model in several areas of risk management are also provided. Moreover, sufficient conditions for embedding the distribution corresponding to the model into an important class of transformed distributions are established.
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