Which of the statements are correct when adjusting for risk

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Problem 1: Which of the following statements are correct when adjusting for risk through the discount rate?

i. Calculate the net present value, then make a premium adjustment.

ii. Add a premium to the risk-free discount rate.

iii. Use the risk-adjusted discount rate to calculate net present value.

iv. Make decisions, based on a subjective judgement of the risk

Reference no: EM132618324

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