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The Value of Any Asset-Real or Financial-Is Based on the _____

Question 4

Multiple Choice

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


A) weighted average cost of the investment; rate of return achieved by the firm
B) cash flow expected to be generated by the asset; the rate of return required by investors
C) marginal return an investor expects to earn from the investment; additional cash flow generated by the asset
D) rate of return achieved by the investment firm; investors' weighted average cost of investing their money
E) rate of return earned by the firm; cash flow expected to be generated by the asset

Correct Answer:

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