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Market Value Approach |
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Market Value ApproachAppraising the value of a property by comparing the price of similar properties (comparables) recently sold. The degree of simiality of the properties and circumstances of the sale are the important characteristics to consider,Market Value Approach Similar MatchesSignaling approachSignaling approachNotion that insiders in a firm have information that the market does not have, and that the choice of capital structure by insiders can signal information to outsiders and change the value of the firm. This theory is also called the asymmetric information approach. Variance minimization approach to trackingVariance minimization approach to trackingAn approach to bond indexing that uses historical data to estimate the variance of the tracking error. Risk premium approachRisk premium approachA common approach for tactical asset allocation to determine the relative valuation of asset classes based on expected returns. Absorption approachAbsorption approachA way of understanding the determinants of the balance of trade, noting that it is equal to income minus absorption. Due to Alexander (1952) Monetary approachMonetary approachA framework for analyzing exchange rates and the balance of payments that focuses on supply and demand for money in different countries. A floating exchange rate is assumed to equate supply and demand and thus to reflect relative growth rates of money supplies and determinants of demand. Under a pegged exchange rate, the balance of payments surplus or deficit equals the excess demand or supply, respectively, for a country's money. Further SuggestionsPortfolio approachTop down approach Asset approach Residual dividend approach Cross sectional approach Debt service parity approach Stratified sampling approach to indexing Optimization approach to indexing Elasticities approach Formula approach |
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