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Certainty Equivalent Cash flow (CEQ) is obtained through converting the expected  cash flows by a ______ shift of risk. If we discount the CEQ by the time value of money,  we will have the present value _______ discounting future cash flow by time and risk  discounting factor. Therefore, CEQ is always ______ than the expected cash flow.  Find the correct choice to fill the blanks.  A. time varying, same as, lower B. constant, same as, lower  C. time varying, higher than, lower D. constant, same as, higher

Certainty Equivalent Cash flow (CEQ) is obtained through converting the expected  cash flows by a ______ shift of risk. If we discount the CEQ by the time value of money,  we will have the present value _______ discounting future cash flow by time and risk  discounting factor. Therefore, CEQ is always ______ than the expected cash flow.  Find the correct choice to fill the blanks.  A. time varying, same as, lower B. constant, same as, lower  C. time varying, higher than, lower D. constant, same as, higher

Intermediate Financial Management (MindTap Course List)
Intermediate Financial Management (MindTap Course List)
13th Edition
ISBN:9781337395083
Author:Eugene F. Brigham, Phillip R. Daves
Publisher:Eugene F. Brigham, Phillip R. Daves
Chapter8: Basic Stock Valuation
Section: Chapter Questions
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Certainty Equivalent Cash flow (CEQ) is obtained through converting the expected 
cash flows by a ______ shift of risk. If we discount the CEQ by the time value of money, 
we will have the present value _______ discounting future cash flow by time and risk 
discounting factor. Therefore, CEQ is always ______ than the expected cash flow. 
Find the correct choice to fill the blanks. 
A. time varying, same as, lower
B. constant, same as, lower 
C. time varying, higher than, lower
D. constant, same as, higher 

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