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A project has an expected risky cash flow of $500 in year 3. The risk-free rate is 4%, the expected market rate of return is

A project has an expected risky cash flow of $500 in year 3. The risk-free rate is 4%, the expected market rate of return is 14%, and the project's beta is 1.20. Calculate the ratio of the certainty equivalent cash flow to expected risky cash flow in year 3. Question options: 0.7207 0.6381 0.8966 0.8609

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