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Certainty equivalent

• Abbreviated CEs. Risk-adjustment factors that represent the percent of estimated cash inflows that investors would be satisfied to receive for certain, rather than the cash inflows that are possible for each year.

• An amount that would be accepted in lieu of a chance at a possible higher, but uncertain, amount.

 
 Embedded terms in definition
 Cash
 
 Related Terms
 

<< Ceo Certificate of deposit >>

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