ANALYTICAL TABLE OF CONTENTS xviiCHAPTER VII

THE INVESTMENT OPPORTUNITY PRINCIPLES

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11. Eligible and Ineligible Options.150

§ 2. The Method of Comparative Advantage.152

§ 3. The Concept of Rate of Return Over Cost.155

§ 4. The Principle of Return Over Cost.158

i 5. Marginal Rate of Return Over Cost.159

§ 6. The Illustration of Cutting a Forest.161

§ 7. Other Similar Illustrations.166

§ 8. The Case of Perpetual Returns.167

§ 9. The General Case.. . 168

§ 10. Range of Choice Depends on Interest Rate.170

§11. The Investment Opportunity Principles Summarized . . 175

§ 12. Interrelation of Human Impatience and Investment Op-portunity .176

CHAPTER VIII

DISCUSSION OF THE SECOND APPROXIMATION

§ 1. Opportunity Reduced to Lowest Terms.178

§ 2. Investment Opportunity Essential.181

§ 3. Options Differing in Time Shape Only.184

§ 4. The Imaginary “Hard-Tack” Illustration.186

§ 5. The Imaginary “Figs” Example.191

§ 6. The Imaginary “Sheep” Example.192

§ 7. Opportunities as to Repairs, Renewals, Betterments . . 194

§ 8. Opportunity to Change the Application of Labor . . . 200

§ 9. Fluctuations in Interest Rates Self-Corrective . . . 202

§ 10. Wide Opportunities Stabilize Interest.204

CHAPTER IX

THIRD APPROXIMATION TO THE THEORY OF INTERESTAssuming Income Uncertain

§ 1. More Than One Rate of Interest.206

§ 2. Relations Between the Various Rates.208

§ 3. Limitations on Loans. 210

§ 4. Risk and Small Loans. 213

§5. Salability as a Safeguard.215

§ 6. General Income Risks.216

§ 7. Securities Classified as to Risk. 218

§ 8. Effect of Risk on the Six Principles.222

§ 9. Summary of the Three Approximations (Numbered 1, 2, 3)

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