Certainty equivalent
Definition
An amount that would be accepted today (risk free) in lieu of a chance to receive a possibly higher, but uncertain, amount.
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Copyright © 2011 Campbell R. Harvey, Professor of Finance, Fuqua School of Business at Duke University
Term of the Day
Market check
An investigation typically conducted by an investment banking firm, on behalf of a target's Board of Directors (or Special Committee) as part of a process to determine whether a proposed price for... Read More
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