If the Risk Adjusted Discount Rate Method and the Certainty

Multiple Choice

If the risk adjusted discount rate method and the certainty equivalent methods are to give the same results,then the certainty equivalent factor (at) must equal (where rf is the risk-free interest rate,and "k" is the risk adjusted cost of capital)

A) (1 + r_f) ^t times (1 + k) ^t.
B) (1 + k) ^t divided by (1 + r_f) ^t.
C) (1 + r_f) ^t divided by (1 + k) ^t.
D) (1 + k) ^t minus (1 + r_f) ^t.