Question: What are the differences between the certainty equivalent (CE) and risk-adjusted discount rate (RADR) methods for risk incorporation?

What are the differences between the certainty equivalent (CE) and risk-adjusted discount rate (RADR) methods for risk incorporation?

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The certainty equivalent CE method and the riskadjusted discount rate RADR method are both used to incorporate risk into financial decisionmaking but they approach risk in different ways Here are the ... View full answer

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