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QUESTION
A project has an expected risky cash flow of $500, in year 4. The risk-free rate is 4%, the market rate of return is 13%, and the project's beta is 1....
A project has an expected risky cash flow of $500, in year 4. The risk-free rate is 4%, the market rate of return is 13%, and the project's beta is 1.2. Calculate the certainty equivalent cash flow for year 4.
