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When Valuing a Project Using the Black-Scholes Option Pricing Model,R

Question 31

Multiple Choice

When valuing a project using the Black-Scholes option pricing model,R is set equal to the:


A) historical real market rate of return.
B) annually compounded risk-free rate.
C) expected future real market rate of return.
D) continuously compounded risk-free rate.
E) project's CAPM rate of return.

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