Which best defines Market Value? Group of answer choices: Whatever the market will bear. Most probable selling price, assuming “normal” sale conditions What an investor is willing to pay for a property. The appraised value
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Market Value is the value of the asset in the market place. In other words, it is the value at which one particular asset is sold in the market place.
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- Which valuation method is dependent on a calculation of terminal value? a) DCF b) Comparable Property c) Capitalization Rate d) Replacement Cost Please ensure accuracy and explain your choiceThe expected value of an investment: Answer a. Is what the owner will receive when the investment is sold b. Is the sum of the payoffs c. Is the probability-weighted sum of the possible outcomes d. Cannot be determined in advanceWhen considering the time value of money in making an investment decision, an investor would purchase a property when: I. Present Value < purchase price II. IRR (Internal Rate of Return) < discount rate (investor’s required return) A: I only B: II only C: both I and II D: neither I nor II
- explain the unique characteristics of the asset class, their associated risks and potential returns. Foreach asset class, you should use one or two examples to support your explanation. Asset Class Characteristics Risk Potential Returns ExampleCash Products Fixed Income Equities CurrenciesDerivativesWhich of the following are the key factors when determining asset allocation for an investment? I. Time an investor has until he needs to use the money from the investment (time horizon) II. Risk preferences (tolerance for risk) III. Current financial situation a. I., II., & III. b. I. & III. c. II. & III. d. I. & II.Question:- What would decrease the internal rate of return of a proposed asset purchase?
- Why would an investor apply the Fama-MacBeth Method in asset pricing assumptions?"The valuation of real estate is based on a cobination of facts, assumptions and judgement" critically examine this assertion, with specific reference to the investment method of valuation.?13) The market value of an asset: Select one or more: is viewed as accurately reflecting intrinsic value of an asset by investors, if they believe a market is highly efficient changes through time as a new information is released. is the price at which the asset can be bought or sold at a given point in time.
- What is the Fama-MacBeth Method in asset pricing assumptions?Explain how the possible profit and loss possibilities arise for an individual who invests in a: a. A Call Option i. Be sure to explain what a Call Option is. ii. Be sure to incorporate the cost of the Call Option in your analysis. b. A Put Option i. Be sure to explain what a Put Option is. ii. Be sure to incorporate the cost of the Put Option in your analysis.1. How to compare different assets in investment selection process? 2. What are the quantitative characteristics of the assets and how to measure them? 3. How does one asset in the same portfolio influence the other one in the same portfolio? 4. And what could be the influence of this relationship to the investor’s portfolio? 5. What is relationship between the returns on an asset and returns in the whole market (market portfolio)?