The certainty equivalent approach adjusts the ____ for risk in the ____ of the net present value equation.
A) net cash flows; numerator
B) risk-free rate; numerator
C) required return; numerator
D) net cash flows; denominator

Question

Quizplus · Accepted Answer

The certainty equivalent approach adjusts the net cash flows for risk in the numerator of the net present value equation.

The Certainty Equivalent Approach Adjusts the ____ for Risk in the ____

The Certainty Equivalent Approach Adjusts the for Risk in the