Which of the Following Will NOT Increase the Value of a Real

question 2

Multiple Choice

Which of the following will NOT increase the value of a real option?

• A) Lengthening the time in which a real option must be exercised.
• B) An increase in the volatility of the underlying source of risk.
• C) An increase in the risk-free rate.
• D) An increase in the cost of obtaining the real option.
• E) A decrease in the probability that a competitor will enter the market of the project in question.

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Definitions:

Mating Preferences

The criteria or attributes individuals select consciously or subconsciously in choosing a mate.

Evolutionary Psychology

A theoretical approach in psychology that examines human thoughts and behaviors through the lens of natural selection and adaptation.

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Social and behavioral norms that are considered appropriate for women in a given culture.

Sexual Orientation

An individual's pattern of emotional, romantic, or sexual attraction to others, often categorized as heterosexual, homosexual, bisexual, etc.