How is risk premium used to account for risk in NPV calculations? What is the difference between

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How is risk premium used to account for risk in NPV calculations? What is the difference between diversifiable and nondiversifiable risk? Why should only nondiversifiable risk enter into the risk premium?
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Microeconomics

ISBN: 978-0132857123

8th edition

Authors: Robert Pindyck, Daniel Rubinfeld

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