Value additivity principal

Value additivity principal

When the value of a whole group of assets exactly equals the sum of the values of the individual assets that make up the group of assets. Or, the principle that the net present value of a set of independent projects is just the sum of the net present values of the individual projects.

Value Additivity Principal

1. A situation in which the market value of a portfolio or other group of assets exactly equals the market value of the individual assets or securities represented therein.

2. A situation in which the net present value of a portfolio or other group of assets exactly equals the net present value of the individual assets or securities represented therein.
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