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 capi

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


C

Economics

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