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  3. Study Set
    Principles of Managerial Finance
  4. Exam
    Exam 12: Risk and Refinements in Capital Budgeting
  5. Question
    Because of the Basic Mathematics of Compounding and Discounting, the Risk-Adjusted
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Because of the Basic Mathematics of Compounding and Discounting, the Risk-Adjusted

Question 73

Question 73

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Because of the basic mathematics of compounding and discounting, the risk-adjusted discount rate (RADR) approach implicitly assumes that risk is an increasing function of time.

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