The process that links risk and return in order to determine the worth of an asset is termed

Question

Quizplus · Accepted Answer

Valuation is the process of determining the current worth of an asset, based on various factors such as risk and potential return. This process considers both quantitative and qualitative data to come up with a realistic estimate of the asset's value. Evaluation, on the other hand, is a broader term that includes the process of assessing the performance or effectiveness of an asset, organization, or person. Discounting and variable growth are related concepts but are not directly linked to the process of determining the worth of an asset.

The Process That Links Risk and Return in Order to Determine