Which of the following sentences is true? a. The value of an asset...
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Finance
Which of the following sentences is true? a. The value of an asset depends on the historical cash flow(s) up to the present time. b. In the valuation process, the higher the risk, the lower is the required return. c. The value of an asset is determined by discounting the expected cash flows back to its present value, using an appropriate discount rate that reflects the level of risk to be bared. d. The level of risk associated with a given cash flow positively affects its value. e. None of the above.
Which of the following sentences is true?
a.
The value of an asset depends on the historical cash flow(s) up to the present time.
b.
In the valuation process, the higher the risk, the lower is the required return.
c.
The value of an asset is determined by discounting the expected cash flows back to its present value, using an appropriate discount rate that reflects the level of risk to be bared.
d.
The level of risk associated with a given cash flow positively affects its value.
e.
None of the above.
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