Explain Why Analysts and Investors Use Risk-Adjusted Expected Rates of Return

question 8

Essay

Explain why analysts and investors use risk-adjusted expected rates of return as discount rates in valuation.Why do risk-adjusted expected rates of return increase with risk?

Identify the various forms of logical inferences: Simp, Conj, Add, CD, DD.

Recognize and apply simplification rules in logical arguments.

Distinguish between the different inference forms: MP, MT, HS, DS.

Understand the application of conjunction rules in logical arguments.