Market valuation function

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In the areas of financing and investment calculation, a market valuation function is generally understood to be a function that maps (future) uncertain cash flows to a (current) value (measured in money).

You can z. B. be defined as follows:

  • Be
  • then applies:
    • is called the market valuation function .

Value additivity is often assumed as a property for a market valuation function , among other things because it is easier to calculate with.