Following a decrease in the risk-free rate, the certainty equivalent adjustment factor will:
A)rise for risk adverse investors.
B)fall for risk adverse investors.
C)fall for risk seeking investors.
D)none of these.

Name: Following a decrease in the risk-free rate, the certainty equivalent adjustment factor will: A)rise for risk adverse investors. B)fall for risk adverse investors. C)fall for risk seeking investors. D)none of these.
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Question

Quizplus · Accepted Answer

The Answer is D

Following a Decrease in the Risk-Free Rate, the Certainty Equivalent