Market estimates of investors reactions to risk cannot be measured precisely, so it is impossible to set

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“Market estimates of investors’ reactions to risk cannot be measured precisely, so it is impossible to set risk-adjusted discount rates for various classes of investment with a high degree of precision.” Discuss this statement.

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Managerial Economics

ISBN: 978-0324588866

12th edition

Authors: Mark Hirschey

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Question Posted: Feb 13, 2015 09:56 AM

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Market estimates of investors reactions to risk cannot be measured precisely, so it is impossible to set

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This statement has considerable validity It is impossible to precisely measure an individuals attitu...View the full answer

Managerial Economics

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