The Volatility of Interest Rates Can Affect the Value of the Project

question 26

Multiple Choice

The volatility of interest rates can affect the value of the project by:

• A) increasing the value as volatility increases.
• B) increasing the value as volatility decreases.
• C) decreasing the value as volatility increases.
• D) interest rate volatility does not affect value.
• E) None of these.

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