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You are considering to repair an old Ford Mustang that you plan to sell after one year for 6 7 7 5 0 . That
You are considering to repair an old Ford Mustang that you plan to sell after one year for That cash flow is uncertainty with the same risk as the market. The riskfree interest rate is but your riskadjusted rate is Suppose a car dealer now approaches and offers to buy the car from you at the end of the year for a fixed price. How much less would you accept to sell the car to remove the uncertainty about the payoff on your investment
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