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The value of any asset—real or financial—is based on _____ and _____. A.the weig

ID: 2779712 • Letter: T

Question

The value of any asset—real or financial—is based on _____ and _____.

A.the weighted average cost of investment; the rate of return achieved by the investment firm

B.the rate of return achieved by the investment firm; the weighted average cost of investment to the investor

C.the marginal return to investor from the investment asset; the additional cash flow generated by the asset

D. the cash flow expected to be generated by the asset; the rate of return required by investors

E.the rate of return achieved by the investment firm; the cash flow expected to be generated by the asset

Explanation / Answer

D. THE CASH FLOW EXPECTED to be generated by the asset; the rate of return required by investors