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Question
Which of the following is not true of liquidity or marketability risk or discount?
a. It is measurable.
b. It is believed to have declined in recent years
c. The magnitude of the discount or risk is inversely related to the size of the investors equity ownership in the business.
d. The magnitude of the discount or risk is directly related to the size of the investors equity ownership in the business.
e. It is important to adjust the discount rate for liquidity risk.
Answer
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