Explain arbitrage risk free arguments, Financial Management

The current market value of any real or financial assets is the present value of the cash flows accruing to that asset discounted by a market determined risk-adjusted required rate of return, with exception for options which are priced via no arbitrage risk-free arguments.  In no more than 250 words, explain what this means.  Using one or more of our present value formulas would be very helpful. Also, do not worry about the option part.

Posted Date: 3/21/2013 6:16:29 AM | Location : United States







Related Discussions:- Explain arbitrage risk free arguments, Assignment Help, Ask Question on Explain arbitrage risk free arguments, Get Answer, Expert's Help, Explain arbitrage risk free arguments Discussions

Write discussion on Explain arbitrage risk free arguments
Your posts are moderated
Related Questions
For what kinds of needs do you think a firm would issue securities in the money market versus the capital market?

Explain the Types of Debt Securities There are many types of debt securities available in market.  The range includes Government Securities, Deep discount bonds, Deben

I need report on Risk and Return. Do you provide help in topic Risk and Return? I need expert's assistance to solve my college assignment. Please suggest if it works for me.

The values shown in ordinary annuity tables (either present value or compound value) can be adjusted to the annuity due form by ____ the ordinary annuity interest factor by ____. (

a)  What two legal documents should the couple ensure are up-to-date if they want a sound estate plan?  What would happen if either became incapacitated or died and didn't have any

complete the balance sheet and sales information using the following data: debt to assets ratio 50% current ratio 1.8x total assets turnover 1.5x day sales outstanding 36.5 days (c

Discuss the process of  Maximise Profits Let's first look at profit maximisation.  Profit (also known as net income or earnings) canbe defined as the amount a business earns af

SCL Limited a highly profitable company is engaged in the manufacture of power intensive products.

Question: (a) Describe the axioms of utility. (b) An economic agent has a logarithmic utility function, U(W) = lnw and has initial wealth $20,000. She is offered the subsequent g

Define why we measure a project’s risk as the change in the CV. We calculate a project’s risk as the change in the coefficient of variation since this focuses on the change in