• International conference on construction engineering and project management
• /
• 2005.10a
• /
• pp.1244-1249
• /
• 2005

Present PII(Private Infrastructure Investment) in Korea has increased up to 11% compared to the year 2003 and is expected to increase in the future. In spite of its rapid increase, we don't have any definite standard or system which distinctly presents the rate of return for domestic PII yet, and practical and scientific research is not sufficient compared to its necessity and importance. Hence, in this study we suggests methods to estimate the rate of return of PII to promote SOC PII to last successfully and present the proper level of rate of return of PII which is appropriate for domestic situations through diverse analysis. Therefore, to present reasonable rate of return, we have used 5 methods: previous research analysis, case study, financial index analysis, analysis of investor's rate of return, and analysis of rate of return in a real estate market. After comparing and analyzing these methods, at the end, we have presented the appropriate level of rate of return of PII, which can be applied in the domestic market.

• The Journal of Fisheries Business Administration
• /
• v.44 no.2
• /
• pp.1-17
• /
• 2013

We investigate the appropriateness of the fixed 12% discount rate to be used in estimating the amount of compensation for revoking a license for fishery business by the Enforcement Decree of Fisheries Act in Korea. We also suggest the appropriate discount rate fully reflecting the change of market interest rate in the Korean financial market. The capital asset pricing model, or, CAPM is the best known model of risk and return, and is widely used to estimate the expected rate of return for the risky projects. Even though the CAPM implies that the discount rate or the expected rate of return should change as the related market factors do, the discount rate used to estimate compensation for revoking a license for fishery business remains to be the same 12% rate for the last 15 years by law. During this period, however, the yield to maturity for the 5-year government bonds in Korea has dramatically changed from about 12% to less than 3%. In order to provide the fair compensation for the damages against the coastal fisheries and evaluate the intrinsic value of fishery resources in the coastal areas, we suggest that the appropriate discount rate should be determined by the yield to maturity of the government bonds with 5-year maturity, instead of the current fixed 12% interest rate.

• Korean Journal of Construction Engineering and Management
• /
• v.5 no.6 s.22
• /
• pp.179-190
• /
• 2004

Present private infrastructure investment in SOC investment has increased up to $11\%$ compared to the year 2003 and it is expected to increase in the future. In spite of its rapid increasement we don't have definite standard or system on distinctly presented rate of return for domestic private infrastructure investment yet, and practical and scientific research is not sufficient, compared to its necessity and importance. Hence, in this study we tried to build theories systematically, which are related to rate of return of private infrastructure investment to promote SOC private infrastructure investment to last successfully and present the proper level of rate of return of private infrastructure we investment appropriate in domestic situations through diverse analysis. Therefore, to present reasonable rate of return, we used 5 methods: existing research analysis, case study, financial index analysis, analysis of investors rate of return, and analysis of rate of return in a real estate market. After comparing and analyzing these methods, Ive presented in the end the appropriate level of rate of return of private infrastructure investment, which can be applied in a domestic market.

• The Journal of Asian Finance, Economics and Business
• /
• v.8 no.2
• /
• pp.57-64
• /
• 2021

This research attempts to formulate a new mean-risk model to replace the Markowitz mean-variance model by altering the risk measurement using ARCH variance instead of the original variance. In building the portfolio, samples used are closing prices of Indonesia Composite Stock Index and Indonesia Composite Bonds Index from 2013 to 2018. This study is a qualitative study using secondary data from the Indonesia Stock Exchange and Indonesia Bonds Pricing Agency. This research found that Markowitz's model is still superior when utilized in daily data, while the mean-ARCH model is appropriate with wider gap data like monthly observation. The Historical return has also proven to be more appropriate as a benchmark in selecting an optimal portfolio rather than a risk-free rate in an inefficient market. Therefore Mean-ARCH is more appropriate when utilized under data that have a wider gap between the period. The research findings show that the portfolio combination produced is inefficient due to the market inefficiency indicated by the meager return of the stock, while bears notable standard deviation. Therefore, the researcher of this study proposed to replace the risk-free rate as a benchmark with the historical return. The Historical return proved to be more realistic than the risk-free rate in inefficient market conditions.

• Journal of Korean Society of Industrial and Systems Engineering
• /
• v.35 no.4
• /
• pp.219-226
• /
• 2012

Recently real-estate investment business is standing out as a new plan for creation of source of income. In this paper, we suggested appropriate real-estate investment strategy through the reconstruct case study of existing one-storied building. That is, we showed the efficient process of decision and propel to reconstruct and the key points for lease business and post management after building completion. Also, we analyzed the rate of return of commercial building investment in order to find its optimum dealing time. Therefore the results of this paper are expected to be a help to old ages and persons laying plans for a similar business.

• ETRI Journal
• /
• v.30 no.2
• /
• pp.255-260
• /
• 2008

We compare the performance of a wavelength remodulated wavelength-division-multiplexed passive optical network implemented using Manchester-coded or inverse-return-to-zero (IRZ)-coded signal downstream and non-return-to-zero remodulated signal upstream. We investigate the effects of varying differences between downstream and upstream bit rates on the two coding schemes. When the bit rate ratio of upstream to downstream is less than or equal to 50%, the performance of Manchester coding is better than that of IRZ coding. However, when the bit rate ratio of upstream to downstream is higher than 50%, Manchester code requires appropriate time delay between upstream and downstream signals, whereas IRZ code needs reduced extinction ratio in the downstream signal.

• New & Renewable Energy
• /
• v.10 no.2
• /
• pp.40-47
• /
• 2014

This study is intended to analyze the appropriate scope for 9.9MW biomass cogeneration, feasibility and sensitivity according to changing market situation. In the study, the heat load is classified into three types to predict heat sales and find out the appropriate scope of thermal business that is operated in CHP 34.42 Gcal/h, PLBwg 70 Gcal/h of cogeneration. the feasibility is estimated based on internal rate of return (IRR) and net present value(NPV). the sensitivity is analyzed in terms of biomass fuel cost, unit price of heating cost, investment cost, SMP unit price and REC unit price.

• Journal of applied mathematics & informatics
• /
• v.34 no.1_2
• /
• pp.75-84
• /
• 2016

The objective of this work is to perform a geometric analysis of the net present value (NPV) and Internal Rate of Return (IRR), defining analytics and in verifying the relationship between geometric properties of such functions. For this simulation, was used the values of the cash flows for each period identical and equal to US$ 200.00 cash, the initial investment US$ 1,000.00 and investments of each identical and equal to US$ 50.00 period. In addition, the discount rate and time were considered a maximum of 2 years (24 months) at a rate between 0 and 100%. The geometric analysis of the characteristics obtained from the expressions of the Net Present Value and Internal Rate of Return possible to observe that besides the analytical dependence between these quantities , the geometric relationships are relevant when studied in relation to the zero NPV and expressed a great contribution the sense of a broad vision for the administrator in the analysis of analytical variables that in uences the balance sheet of the company.

• Journal of the Korea Society for Simulation
• /
• v.32 no.4
• /
• pp.69-76
• /
• 2023

To improve the financial stability of the National Pension, an appropriate target rate of return should be established based on pension liabilities, and asset allocation policies should be formulated accordingly. The purpose of this study is to calculate the target rate of return considering the contributions of subscribers and the pension benefits, and based on this, derive an asset allocation. To do this, we utilized the internal rate of return methodology to calculate the target rate of return for each cohort. And then, we employed a Monte Carlo simulation-based re-sampling mean-variance model to derive asset allocation for each cohort that satisfy the target rate of return while minimizing risks. Our result shows that the target rate of return for each cohort ranged from 6.4% to 6.85%, and it decreased as the generations advanced due to a decrease in the income replacement rate of the National Pension. Consequently, the allocation of risky assets, such as stocks, was relatively reduced in the portfolios of future generations. This study holds significance in that it departs from the macroeconomic-based asset allocation methodology and proposes investments from an asset-liability management perspective, which considers the characteristics of subscribers' liabilities.

• The Korean Journal of Applied Statistics
• /
• v.28 no.3
• /
• pp.541-559
• /
• 2015

VaR is now widely used as an important tool to evaluate and manage financial risks. In particular, it is important to select an appropriate volatility model for the rate of return of financial assets. In this study, both univariate and multivariate models are considered to evaluate VaR of the portfolio composed of KOSPI, Hang-Seng, Nikkei indexes, and their performances are compared through back testing techniques. Overall, multivariate models are shown to be more appropriate than univariate models to estimate the portfolio VaR, in particular DCC and ADCC models are shown to be more superior than others.