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 |
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Cost Of Capital Applications And Examples
Authors: Shannon P. Pratt, Roger J. Grabowski, Richard A. Brealey
5th Edition
1118555805, 9781118555804
