If a project’s only risk is diversifiable, A) only half the risk prem

If a project’s only risk is diversifiable,

A) only half the risk premium should be added to the discount rate.
B) only half the risk premium should be subtracted from the discount rate.
C) the risk premium should be added to the discount rate.
D) the risk premium should be subtracted from the discount rate.
E) no risk premium should be attached to the discount rate.

 

ANSWER

E

 

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