The risk-adjusted discount rate (RADR) is the rate of return that must be earned on a given project to compensate the firm's owners adequately, thereby resulting in the maintenance or improvement of share price.

Question

Quizplus · Accepted Answer

The definition of risk-adjusted discount rate (RADR) is correct. It refers to the rate of return needed on a project to ensure that the firm's owners receive adequate compensation for the risk involved.

The Risk-Adjusted Discount Rate (RADR) Is the Rate of Return