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Why might disinflation prove favorable to financial assets?
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- Why is it favorable to invest in different investable assets?How do economies of scale and lumpy assets affect financialforecasting?In current purchasing power technique (a) Why is it necessary to consider monetary assetsseparately from nonmonetary assets? Analyze withexamples. (b) Why does holding monetary assets lead to apurchasing power loss, but holding nonmonetary assetsdoes not lead to a purchasing power loss? Analyze withexamples
- What are some advantages of matching the maturities of claims against assets with the lives of theassets financed by those claims? Is it feasible for afirm to match perfectly the maturities of all assetsand claims against assets? Why might a firm deliberately mismatch some asset and claim maturities?What is the loss on realization of noncash assets?What is the DuPont method of analysis and how does it break down return on assets?
- do liquid assets frequently have lower rates of return than fixed assets?What is the loss on realization of noncash assets? present solution.What is the difference between tangible and intangible assets? What is difference between fair value and market value? What is Goodwill? Why is it difficult to determine its true value?
