Problem:
In adjusting for risk, which of the following is - "TRUE" - about the risk adjusted discount rate and/or the certainly equivalent methods _____________
(a) The risk-adjusted discount rate allows for the use of varied costs of capital, enabling the large multi-divisional firm to incorporate differing levels of divisional risk into the capital budgeting process, (b) The risk-adjusted discount rate allows for the separate adjustment for risk and time, (c) The certainly equivalent method allows for the use of varied costs of capital, enabling the large multi-divisional firm to incorporate differing levels of divisional risk into the capital budgeting process, or (d) The certainly equivalent method allows for the separate adjustment for risk and time/.