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Briefly explain the implied assumption when the risk-neutral method is used for valuing real options.
Cephalocaudal
A pattern of growth and development where physical and motor skills progress from the head downwards to the rest of the body.
Central Part
An essential or core component of something that plays a crucial role in its functioning or structure.
Body Type
Refers to the physical and physiological characteristics of an individual's body, often categorized into ectomorph, mesomorph, and endomorph.
Genes
Small segments of DNA located in definite positions on particular chromosomes; functional units of heredity.
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