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A basic principle of finance is that the true value of an asset (such as stocks, bonds) is the present value of all future cash
A basic principle of finance is that the true value of an asset (such as stocks, bonds) is
the present value of all future cash flows generated by the investment. | ||
unrelated to the degree of risk associated with the future cash flows generated by the asset. | ||
unrelated to the future net cash flows generated by the investment. | ||
the undiscounted sum of all future net cash flows generated by the investment. |
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