Isn't it strange that Markowitz taught us that when it came to returns, maximising value is a stupid idea, whereas when it comes to evaluating the behaviour of managers in firms, maximising value stands still alone as a universal goal in US/UK models of capitalism.
Or, spelled out a little, companies are allowed to act as though they have permission exclusively to increase the share price (and hence increase the period return on the share price) as their operational definition of the goal of maximising shareholder value as opposed, for example, to maximising risk adjusted expected returns.
If risk adjusted returns are the goal for investors in portfolios of stocks, then why aren't they also the goal for owners of individual stocks.
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