# Risk-adjusted discount rate

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## 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

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