certainty equivalent method

Fin
an approach to dealing with risk in a capital budgeting context. It involves expressing risky future cash flows in terms of the certain cash flow which would be considered, by the decision-maker, as their equivalent.

The ultimate business dictionary. 2015.

Look at other dictionaries:

  • certainty equivalent method — In capital budgeting, a method of risk analysis in which a particularly risky return is expressed in terms of the risk free rate of return that would be its equivalent …   Accounting dictionary

  • certainty equivalent method — In capital budgeting, a method of risk analysis in which a particularly risky return is expressed in terms of the risk free rate of return that would be its equivalent …   Big dictionary of business and management

  • Bacon (Francis) and man’s two-faced kingdom — Francis Bacon and man’s two faced kingdom Antonio Pérez Ramos Two closely related but distinct tenets about Bacon’s philosophy have been all but rejected by contemporary historiography. The first is Bacon’s attachment to the so called British… …   History of philosophy

  • Real options valuation — Real options valuation, also often termed Real options analysis,[1] (ROV or ROA) applies option valuation techniques to capital budgeting decisions.[2] A real option itself, is the right but not the obligation to undertake some business decision; …   Wikipedia

  • Net present value — In finance, the net present value (NPV) or net present worth (NPW)[1] of a time series of cash flows, both incoming and outgoing, is defined as the sum of the present values (PVs) of the individual cash flows of the same entity. In the case when… …   Wikipedia

  • Stern Review — The Stern Review on the Economics of Climate Change is a 700 page report released on October 30, 2006 by economist Lord Stern of Brentford for the British government, which discusses the effect of climate change and global warming on the world… …   Wikipedia

  • Europe, history of — Introduction       history of European peoples and cultures from prehistoric times to the present. Europe is a more ambiguous term than most geographic expressions. Its etymology is doubtful, as is the physical extent of the area it designates.… …   Universalium

  • MASORAH — This article is arranged according to the following outline: 1. THE TRANSMISSION OF THE BIBLE 1.1. THE SOFERIM 1.2. WRITTEN TRANSMISSION 1.2.1. Methods of Writing 1.2.1.1. THE ORDER OF THE BOOKS 1.2.1.2. SEDARIM AND PARASHIYYOT …   Encyclopedia of Judaism

  • epistemology — epistemological /i pis teuh meuh loj i keuhl/, adj. epistemologically, adv. epistemologist, n. /i pis teuh mol euh jee/, n. a branch of philosophy that investigates the origin, nature, methods, and limits of human knowledge. [1855 60; < Gk… …   Universalium

  • biblical literature — Introduction       four bodies of written works: the Old Testament writings according to the Hebrew canon; intertestamental works, including the Old Testament Apocrypha; the New Testament writings; and the New Testament Apocrypha.       The Old… …   Universalium

Share the article and excerpts

Direct link
Do a right-click on the link above
and select “Copy Link”

We are using cookies for the best presentation of our site. Continuing to use this site, you agree with this.