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Assumption |
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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 MatchesSmall country assumptionSmall country assumptionThe assumption in an economic model that a country is too small to affect world prices, incomes, or interest rates. Homogeneous 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. Perfect market assumptionsPerfect market assumptionsConditions under which the law of one price holds. The assumptions include frictionless markets, rational investors, and equal access to market prices and information. 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. Further SuggestionsArmington assumptionEconomic assumptions Assumption of Note |
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