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AssumptionBecoming responsible for the liabilities of another party.AssumptionWhen a buyer assumes the loan payments and obligations of the seller. If the buyer defaults, however, both the buyer and seller are responsible for the debt.Assumption Similar MatchesHomogeneous expectations assumptionHomogeneous expectations assumptionAn assumption of Markowitz portfolio construction that investors have the same expectations with respect to the inputs that are used to derive efficient portfolios: asset returns, variances, and covariances. Zero prepayment assumptionZero prepayment assumptionThe assumption of payment of scheduled principal and interest with no payments. Assumption clauseAssumption clauseA clause stating that the seller has passed to the buyer full responsibility for the mortgage on the property. Often, an assumption fee must be paid to the mortgage lender. Assumption of NoteAssumption of NoteAgreement by a buyer to assume the liability under an existing note secured by a mortgage or deed of trust. The lender usually must approve the new debtor in order to release the existing debtor (usually the seller) from liability. Economic assumptionsEconomic assumptionsGeneral market environment a firm expects to operate in over the life of a financial plan. Further SuggestionsPerfect market assumptionsArmington assumption Small country assumption |
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