We must estimate required rates of return on real assets, Ask an Expert

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We must estimate required rates of return on real assets from market data on financial assets, which can be simple to do.

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For real assets, no market data on rates of return exist. As a result, we must look at investors' opportunity cost, the rate of return they give up when they invest in real assets rather than financial assets.

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M92272852

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