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net present value

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11y ago
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6mo ago

The rule of diversification does not explicitly use the time value of money concept. Diversification is a risk management strategy that involves spreading investments across different assets to reduce the overall risk. While the concept of time value of money is relevant in determining the present and future value of cash flows, it does not directly affect the decision to diversify investments.

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Q: Which of the following investment rules does not use the time value of the money concept?
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