
- UID
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- 帖子
- 176
- 主题
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- 注册时间
- 2011-7-11
- 最后登录
- 2016-4-19
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The required rate of return on the stock represents the opportunity cost to the investor.
The higher the opportunity cost, the less the PV of the cashflows from the investment and thus lower market value for the stock.
if the required rate of return falls, the investment cashflows have higher PV than before and thus the investment is worth more. |
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