Principle of finance is that the true value of an asset

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Reference no: EM131593003

A basic principle of finance is that the true value of an asset (such as stocks, bonds) is

the present value of all future cash flows generated by the investment.

unrelated to the degree of risk associated with the future cash flows generated by the asset.

unrelated to the future net cash flows generated by the investment.

the undiscounted sum of all future net cash flows generated by the investment.

Reference no: EM131593003

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