The risk adjusted rate of return and certainty equivalent methods of estimating the risk of new projects differ in how the risk of the new project is accounted for. Select whether the following statements regarding how risk is accounted for using the different methods are true or false:

		True	False
a)	The risk adjusted method takes account of risk by altering the discount rate.
b)	The risk adjusted method takes account of risk by altering the time at which the cash flows occur.
c)	The certainty equivalent method takes account of risk by altering the value of the cash flows.