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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 MatchesCross sectional approachCross sectional approachA statistical methodology applied to a set of firms at a particular time. Portfolio approachPortfolio approachAn approach to explaining exchange rates that stresses their role in changing the proportions of different currency-denominated assets in portfolios. The exchange rate adjusts to equate these proportions to desired levels. Residual dividend approachResidual dividend approachAn approach that suggests that a firm pay dividends if and only if acceptable investment opportunities for those funds are currently unavailable. 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) Asset approachAsset approachA theory of determination of the exchange rate that focuses on its role as the price of an asset. With high capital mobility, equilibrium requires that expected returns on comparable domestic and foreign assets be the same. Further SuggestionsStratified sampling approach to indexingRisk premium approach Debt service parity approach Top down approach Signaling approach Elasticities approach Optimization approach to indexing Formula approach Monetary approach Variance minimization approach to tracking |
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