Risk-adjusted discount rate(redirected from Risk Adjusted Discount Rate)
Risk-adjusted discount rate
The rate established by adding a expected risk premium to the risk-free rate in order to determine the present value of a risky investment.
Copyright © 2012, Campbell R. Harvey. All Rights Reserved.
Risk-Adjusted Discount Rate
The discount rate calculated by adding a risk premium to the risk-free rate of return. This is used to calculate the rate of return on a risky investment.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved