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  3. Study Set
    Principles of Managerial Finance
  4. Exam
    Exam 12: Risk and Refinements in Capital Budgeting
  5. Question
    The Risk-Adjusted Discount Rate (RADR) Is the Rate of Return
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The Risk-Adjusted Discount Rate (RADR) Is the Rate of Return

Question 55

Question 55

True/False

The risk-adjusted discount rate (RADR) is the rate of return that must be earned on a given project to compensate the firm's owners adequately, thereby resulting in the maintenance or improvement of share price.

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