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How do speculative risk and pure risk differ

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(1) The author describes three interpretations of the cost of capital; one as a value driver, one from the investor's view point, and one from the viewpoint of the entrepreneur. Explain these three different interpretations, provide an example of each, and confirm why each is an appropriate interpretation of the cost of capital.

(2) How do speculative risk and pure risk differ? Which is of greater concern to a corporate executive? Why

Reference no: EM131942430

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