The Risk Adjusted Discount Rate

question 50

Multiple Choice

The risk adjusted discount rate

• A)is the sum of the risk-free rate and the risk premium.
• B)includes risk in the denominator of the present value calculation.
• C)includes risk in the numerator of the present value calculation.
• D)All of the above

---

Definitions:

Eastern Europe

A region that encompasses many countries to the east of Germany and west of the Ural Mountains, often including nations such as Poland, Hungary, and the Czech Republic.

Yellow Press

Sensationalism in newspaper publishing that reached a peak in the circulation war between Joseph Pulitzer’s New York World and William Randolph Hearst’s New York Journal in the 1890s; the papers’ accounts of events in Havana Harbor in 1898 led directly to the Spanish-American War.

Sensational Accounts

Reports or stories exaggerated or sensationalized to attract attention or provoke public interest and emotional reactions.

Platt Amendment

An amendment to a U.S. army appropriations bill (1901), which stipulated conditions for the withdrawal of United States troops remaining in Cuba following the Spanish–American War, and shaping the Cuban-U.S. relations thereafter.