The Less Certain a Cash Flow, the ________ the Risk

question 44

Multiple Choice

The less certain a cash flow, the ________ the risk, and the ________ the present value of the cash flow.

• A) lower; higher
• B) lower; lower
• C) higher; lower
• D) higher; higher

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Definitions:

Long Run

A period of time in economics during which all factors of production and costs are variable, allowing for the full adjustment of industry and economy.

Farms

Agricultural enterprises where crops are cultivated or livestock is raised for consumption or sale.

Supply and Demand

Supply and demand is the economic model explaining price determination in a market, based on the interaction between sellers' supply of goods and consumers' demand for them.

Long-Run Problem

Issues or challenges that affect an entity over an extended period, often requiring strategic planning to resolve.