Fair profit sharing ratios of Islamic investment contracts
The aim of this work is to calculate the fair profit-sharing ratios and the expected payoffs at maturity for each partner in islamic investment contrats (or instruments), based on profit and loss-sharing (PL-sharing). These investment contracts, known as {\em mudarabah} and {\em musharakah}, can be compared to {\em limited partnerships} and {\em joint ventures} (including all types of venture, such as joint-stock com…