By using different discount rates, the market allocates capital to companies based on their risk, efficiency, and expected returns.

Name: By using different discount rates, the market allocates capital to companies based on their risk, efficiency, and expected returns.
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Different discount rates reflect the market's evaluation of the risk and expected returns of different companies, leading to an allocation of capital based on these factors as well as their relative efficiency.

By Using Different Discount Rates, the Market Allocates Capital to Companies