If a firms only risk is diversifiable, the appropriate discount rate for an investment project iss

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    the risk free discount rate plus a small risk premium.
     the risk free discount rate plus the risk premium added to the discount rate for projects with nondiversifiable risk.
     equal to zero, since the risk can be eliminated through diversification.
     the risk-free discount rate.
asked Jun 2, 2013 in Economics by anonymous
    

1 Answer

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the risk-free discount rate.
answered Jun 3, 2013 by Xyz ~Expert~ (3,650 points)

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