The certainty equivalent factors used to adjust the cash flows for risk can range from _____.
A) -1 to +1
B) 0 to infinity
C) +0.01 to +0.99
D) 0 to +1.0

Question

Quizplus · Accepted Answer

The certainty equivalent factors used to adjust the cash flows for risk can range from 0 (indicating no risk and no adjustment needed) to +1.0 (indicating maximum risk and the need for the largest adjustment).

The Certainty Equivalent Factors Used to Adjust the Cash Flows