Question
Under risk-neutral probability of default, a risk-neutral investor will pay __________ price for the risky asset _____ a risk-averse investor will pay under physical probability
Under risk-neutral probability of default, a risk-neutral investor will pay __________ price for the risky asset _____ a risk-averse investor will pay under physical probability
a.higher than
b.lower than
c.the same as
Note: Option a was marked incorrect
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Corporate Finance
Authors: Stephen Ross, Randolph Westerfield, Jeffrey Jaffe
10th edition
978-0077511388, 78034779, 9780077511340, 77511387, 9780078034770, 77511344, 978-0077861759
