3 ms·

Why do you think a result within a bound is useless?

• beagle3 13y ago
  Because the bound is unknown, and unspecified. I agree that the market tends to price some sort of risk. However, the discussion was "ownership vs rent", with the consensus beIng the cost should be equivalent under some measure; however, some expect it to be cashflow neutral, some inflation neutral, and some risk neutral. Of these, the first two can be quantified but the last cannot - and it is therefore not useful in the discussion of whether the prices make sense. After more than 100 years of discussion, there is still no consensus among economists over whether one should maximize expected value or expected logarithmic value. People often mention use "on a risk adjusted basis" without qualifying the adjustment - and that's a useless thing to do.