Financial slang referring to the reduction of cash flows from a project's forecasted value to its certainty equivalent is a(n)

Question

Quizplus · Accepted Answer

A "haircut for risk" refers to the reduction in cash flows from a project's forecasted value to its certainty equivalent, taking into account the level of risk involved. It is a common financial slang used to describe this concept. The other options (A, C, and D) do not accurately describe this phrase.

Financial Slang Referring to the Reduction of Cash Flows from a Project's