Explain risk and forecasting issues in asset prices
Answers
Answer:
When some one owns an asset, then it is very risky to forecast and determine the future price of the asset. When there are rise in price of certain materials on basis of some sudden incidents or activity in the market, then it may increase the price of asset in a huge amount as well as vice versa is also possible.
Explanation:
Sometimes people get to know that there are going to be some development in certain areas, and people expect to get the prices of lands get raised, and forecasting the rise in price they buy pieces of land on those area, and sometimes it such happens that the development starts and then gets paused for such a long period of time, that the price of the land doesn't increases and ultimately makes the investment on those lands useless.