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Certainty Equivalent Approach
This is a method used in financial analysis to determine the value of risky investments by finding the risk-free cash flow amount that an investor would accept instead of taking a risk.
Approach
A method or strategy used to tackle a problem or task.
Pure Play Method
A valuation technique used in equity analysis that compares a company to others in the same industry or sector with similar operational characteristics.
Risk Adjusted Returns
Investment returns that have been modified to take into account the risk involved, facilitating comparison between different investments.
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