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Which statements are true about the capital valuation adjustment (KVA)? Check all that apply: KVA adjusts the value of a transaction for capital gains. KVA

Which statements are true about the capital valuation adjustment (KVA)?

Check all that apply:

KVA adjusts the value of a transaction for capital gains.

KVA adjusts the value of a transaction for additional capital requirements.

Higher capital requirements due to a transaction increase the value of the transaction.

KVA should reflect the marginal cost of capital for margin requirements, which is lower than the average cost of capital

this is a multiple choice question

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