Question

Explain why all assets should be priced based on their riskiness.

Explain why all assets should be priced based on their riskiness.

Business   Accounting   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

Mostly all assets are valued at fair value It is widely used for generating return assets.

Investor is expected to be compensated for Risk and time value of money Investor should earn more on or average.

If assets are valued based on riskness then the chances of manipulation in financial statements is very less. It assures the market value of assets. This is used when the assets are disposed off. It may fluctuate according to current market condition

So the when the assets are valued they are valued at price based on their riskness. So they are presented in fair value

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Why should standard deviation NOT be used when evaluating the riskiness of a stock that is...
Why should standard deviation NOT be used when evaluating the riskiness of a stock that is considered to be included in a well-diversified portfolio?
Discuss the effect of an increase in the riskiness of bonds (relative to other assets) on...
Discuss the effect of an increase in the riskiness of bonds (relative to other assets) on the interest rate. Perform separate analyses--explain in detail the market effects, which should include a description of graphical analyses--using the bonds market and the liquidity preference framework (money market). Do your separate analyses reach the same conclusion? Notice: You should not submit the graphs.
IPOs are usually under-priced because Select one: a. investors have misjudged the riskiness of the company....
IPOs are usually under-priced because Select one: a. investors have misjudged the riskiness of the company. b. all of these are true. c. the bank underwriting the issue has recommended a lower offer price. d. the company has misjudged the level of investors’ interest.
Explain why a decrease in income taxes would not necessarily increase the riskiness of investments people...
Explain why a decrease in income taxes would not necessarily increase the riskiness of investments people are willing to undertake.
1. If the market is efficient, then all assets are fairly priced, and studying financial statement...
1. If the market is efficient, then all assets are fairly priced, and studying financial statement of a company would not help you find stocks that are undervalued. Yet, why do most professionals still study financial statements? (4 points)
Explain why risk based capital requirements should alter pricing of loans and securities
Explain why risk based capital requirements should alter pricing of loans and securities
Explain why evidence-based practice should take account of the patient's value and culture?
Explain why evidence-based practice should take account of the patient's value and culture?
Explain why risk based capital requirements should alter pricing of loans and securities
Explain why risk based capital requirements should alter pricing of loans and securities
Briefly discuss the concept of the Security Market Line (SML), and explain why all assets must...
Briefly discuss the concept of the Security Market Line (SML), and explain why all assets must plot directly on it in a competitive market.
b. Briefly discuss the concept of the Security Market Line (SML), and explain why all assets...
b. Briefly discuss the concept of the Security Market Line (SML), and explain why all assets must plot directly on it in a competitive market
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT