What is the Value of the security to an investor
Value of the security to an investor is directly proportional to the return that he is expected to get from that security. Higher the return expected, higher is the value. However what are we going to do with the value of the security? Well, value of security is the price that you are going to pay for that security. This means that present value of the security is that value which is dependent on return from security and the risk profile of that security