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

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The process that links risk and return in order to determine the worth of an asset is called valuation. It involves assessing the future expected cash flows from the asset and discounting them back to their present value based on the level of risk involved. This helps in determining the fair price to pay for the asset and the potential return it could generate relative to the level of risk taken. Evaluation is a broader term used to describe the overall assessment of an asset or a company, while discounting and variable growth are specific tools or methods used in the valuation process.

The Process That Links Risk and Return in Order to Determine