ASSETS

Assets are economic resources that can be owned or controlled by an individual, corporation, or government and that have the potential to generate future economic benefits[1][3]. Here are some key points related to assets:

- Assets can be classified into different categories, such as current assets, fixed assets, tangible assets, and intangible assets[1][3].

- Current assets are assets that can be converted into cash within one year, such as cash, accounts receivable, and inventory[1].

- Fixed assets are assets that are not intended for sale and are used for long-term business operations, such as land, buildings, and equipment[1].

- Tangible assets are physical assets that have a measurable value, such as real estate, vehicles, and machinery[3].

- Intangible assets are assets that do not have a physical form but have value, such as patents, trademarks, and goodwill[1][3].

- The value of an asset can be determined by various methods, such as market value, book value, and fair value[1][3].

- The capital asset pricing model (CAPM) is a financial model that calculates the expected rate of return for an asset or investment[1][4][5]. It describes the relationship between systematic risk and expected return for assets[1][5].

- The arbitrage pricing theory (APT) is another financial model for asset pricing that relates various macroeconomic risk variables to the pricing of financial assets[1][6]. It factors in many sources of risk and uncertainty and looks at several macroeconomic factors that determine the risk and return of the specific asset[6].

- The goal of asset management is to maximize the value of assets while minimizing risk[3].

- Asset allocation is the process of dividing an investment portfolio among different asset categories, such as stocks, bonds, and cash, to achieve a specific investment objective[1][3].

- Asset pricing models are used to determine the theoretical fair market value of an asset, which traders then look for slight deviations from the fair market price to trade accordingly[6].

Citations:

[1] investopedia

[2] hbr

[3] wikipedia

[4] theforage

[5] wikipedia

[6] oreilly