Because of their focus on total risk, RADRs are the best theoretical method for adjusting for project risk and are therefore used most often in practice.

Question

Quizplus · Accepted Answer

RADRs (Risk-Adjusted Discount Rates) focus on systematic risk rather than total risk, and while they are a common method, they are not necessarily the best or most used in practice for adjusting project risk.

Because of Their Focus on Total Risk, RADRs Are the Best