Examlex
Which of the following is not in common between lumpers and splitters?
New Venture
A newly established business enterprise, particularly one that is entrepreneurial in nature, aiming to meet a marketplace need by developing a viable business model around a product, service, process, or platform.
Certainty Equivalent Approach
A method to evaluate risk where uncertain future cash flows are converted into certain cash flows under the assumption of risk neutrality.
Risk-Free Rate
The interest rate excluding all risk premiums. The risk-free rate consists of the pure rate and an inflation adjustment. It is approximated by the three-month treasury bill rate. Written as kRF.
Real Option
The value of additional decision-making opportunities available to an investor or company once an initial investment has been made.
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