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What can each of the five principles of finance teach us about the problems in the apartment building industry? Which of the five principles (can
What can each of the five principles of finance teach us about the problems in the apartment building industry? Which of the five principles (can list one or two) will be most useful in devising a public policy solution to these problems and why?
Five principles:
- Money has a time value
- There is a trade-off between risk and return
- Cash flows are the source of value
- Market prices reflect information
- Individuals respond to incentives
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