Does Equation (10.21) imply that as the variance of the interest rate rises, the lower the equivalent

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Does Equation (10.21) imply that as the variance of the interest rate rises, the lower the equivalent fixed rate becomes? Or is it the i’th root of something less than 1, meaning a higher equivalent fixed rate?

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Infrastructure Investment An Engineering Perspective

ISBN: 9781466576698

1st Edition

Authors: David G. Carmichael

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Question Posted: Oct 26, 2024 06:00 AM

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Does Equation (10.21) imply that as the variance of the interest rate rises, the lower the equivalent

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Infrastructure Investment An Engineering Perspective

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