Such a dependence is characteristic for a risk-adjusted discount rate (it connects money value change over time with risk represented by a premium for risk).
Conceptual Problems in the Use of Risk-adjusted Discount Rates.
For this reason, we will use un-leveraged beta to estimate the risk-adjusted discount rate.
APPLYING THE RISK-ADJUSTED DISCOUNT RATE TO SUPPLY CHAIN INVESTMENTS
42% Risk-Adjusted Discount Rate Un-leveraged Leveraged Proxy Industry Proxy Industry [beta] [beta] [beta] [beta] Historical 6.
Expected cash flow/ 1 + Risk premium in risk-adjusted discount rate.
Assume, for instance, that Google has a risk-adjusted discount rate of 13.
For example, Fama's  analysis implies that one can justify the use of risk-adjusted discount rates
to value a level perpetuity by assuming that each period's expected operating cash flows follow a geometric random walk.
1)Brealey and Meyers , state, "If the [future stream of earnings] is risky, the normal procedure is to discount its forecasted (expected) value at a risk-adjusted discount rate
r which is greater than [the risk-free rate].
This risk-adjusted discount rate
is used to calculate the present value of the projected cash flows.
international transfers by Japanese-based corporations, Indian perspectives on technology transfer, the impact of foreign takeovers on innovation and productivity, technology transfer and improved health, acquiring technology for global competition, valuing technology in South Korea, risk-adjusted discount rates
for small-sized venture firms, and technology transfer in China.
This further allows the use of appropriately risk-adjusted discount rates
for each class of cash flows to be used, leading to a more precise and accurate valuation framework.