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The certainty equivalent approach is a risk evaluation technique. Which of the following statements is (are) correct? 1. Certainty equivalents adjust the cash flows in

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The certainty equivalent approach is a risk evaluation technique. Which of the following statements is (are) correct? 1. Certainty equivalents adjust the cash flows in the numerator of the NPV equation. 11. Using the RADR involves adjustments to the denominator of the NPV equation. O a. Only statement it is correct. b. Only statement is correct. t. Both statements and il are correct. 0 0 d. Neither statement i nor Il is correct

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