The Discount Rate Used in Calculating the Certainty Equivalent Net

question 10

Multiple Choice

The discount rate used in calculating the certainty equivalent net present value is the ______.

• A) risk-adjusted discount rate
• B) cost of capital
• C) risk-free rate
• D) cost of equity capital

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Definitions:

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Blind Date

A social engagement between two persons who have not previously met, often arranged by a mutual acquaintance.

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