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Marginalism is a theory of economics that attempts to explain the discrepancy in the value of goods and services by reference to their secondary, or marginal, utility. It states that the reason why the price of diamonds is higher than that of water, for example, owes to the greater additional satisfaction of the diamonds over the water.
Riskfree rate in Rupees = 8.82% - 2.25% = 6.57%. ¤ In November 2013, the Chinese Renmimbi government bond rate was 4.30% and the local currency rating was Aa3, with a default spread of 0.8%. Riskfree rate in Chinese Renmimbi = 4.30% - 0.8% = 3.5%. ̈ Do the analysis in an alternate currency, where getting the riskfree rate is easier.
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The Modigliani–Miller theorem (of Franco Modigliani, Merton Miller) is an influential element of economic theory; it forms the basis for modern thinking on capital structure. The basic theorem states that in the absence of taxes , bankruptcy costs, agency costs , and asymmetric information , and in an efficient market , the enterprise value ...
Jun 2, 2022 · A marginal investor is basically an investor who owns a significant amount of shares of one company and has an influence over its share price. Moreover, a point to note is that such an investor not just holds the shares but also trades those on the market.
Prospect theory is a theory of behavioral economics, judgment and decision making that was developed by Daniel Kahneman and Amos Tversky in 1979. The theory was cited in the decision to award Kahneman the 2002 Nobel Memorial Prize in Economics .
Aug 23, 2023 · Marginalist theory, known as the Marginalist Revolution, is seen as the dividing line between classical and modern economics. Marginalist theory helps to better explain human...
Oct 22, 2023 · Marginalism is the economic principle that economic decisions are made and economic behavior occurs in terms of incremental units, rather than categorically. The key insight of...
