Return ________ is a basic property of financial assets, in that it is a major determinant of their value.

Question

Quizplus · Accepted Answer

Predictability is a basic property of financial assets because investors make decisions based on their expected returns, and the predictability of those returns is a major determinant of the asset's value. Convertibility and divisibility are also important properties of financial assets, but they do not necessarily affect an asset's value in the same way that predictability does. Complexity may make an asset more difficult to value or harder to trade, so it is not a basic property that supports an asset's value.

Return ________ Is a Basic Property of Financial Assets, in That