Risk-Adjusted Discount Rate and Certainty Equivalent Techniques

  • Rosalie T. Ruegg
  • Harold E. Marshall


One technique used by the business community to account for risk is the risk-adjusted discount rate (RADR). The objective of using the RADR technique is to increase the likelihood that the investor will earn a return over time sufficient to compensate for the extra risk associated with specific projects.


Decision Maker Discount Rate Risk Exposure Risk Attitude Time Clock 
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Copyright information

© Springer Science+Business Media New York 1990

Authors and Affiliations

  • Rosalie T. Ruegg
  • Harold E. Marshall

There are no affiliations available

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