Which of the following affect an asset's value to an investor?
I.Amount of an asset's expected cash flow
II.The riskiness of the cash flows
III.Timing of an asset's cash flows
IV.Investor's required rate of return

Question

Quizplus · Accepted Answer

All four factors listed affect an asset's value to an investor. Expected cash flows, their riskiness, the timing of these cash flows, and the investor's required rate of return all play crucial roles in determining how much an asset is worth to an investor.

Which of the Following Affect an Asset's Value to an Investor