When the risk-adjusted discount model employs certainty equivalent adjustment factors, risk aversion is implied if: A)

Question

When the risk-adjusted discount model employs certainty equivalent adjustment factors, risk aversion is implied if:
A)< 1 and k < i.
B)< 1 and the k > i.
C)= 1 and the k equals the risk-free rate of return.
D)none of these.

Quizplus · Accepted Answer

The Answer of When the risk-adjusted discount model employs certainty equivalent adjustment factors, risk aversion is implied if:
A)< 1 and k < i.
B)< 1 and the k > i.
C)= 1 and the k equals the risk-free rate of return.
D)none of these.

When the Risk-Adjusted Discount Model Employs Certainty Equivalent Adjustment Factors