the fundamental principle of finance
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There are six foundational principles that can be used to study finance: money has a time value; the higher the reward, the greater the risk; diversification of investments can reduce overall risk; financial markets are efficient in pricing securities; a manager's and stockholders' objectives may differ; and reputation
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There are six basic principles of finance, these are:
- Principles of risk and return.
- Time value of money.
- Cash flow principle.
- Profitability and liquidity.
- Principles of diversity
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