Rational Buyers and Sellers Use Their Assessment of an Asset's

Multiple Choice

Rational buyers and sellers use their assessment of an asset's risk and return to determine its value. Relative to this concept, which of the following is true?

A) To a buyer the asset's value represents the minimum price that he or she would pay to acquire it.
B) To a seller the asset's value represents the maximum sale price.
C) To a buyer the asset's value represents the maximum price that he or she would pay to acquire it.
D) To a seller the asset's value represents the price at which he acquired the asset.