Risk-Adjusted Discounting
To give $100 and to receive back $110 is to have a return of ($110($100)/$100 = 0.10. The dimensions of the denominator cancel those of the numerator, so return is dimensionless. But to give $100 and to receive $110 after one year is to have a rate of return of 0.10 / 1 year, or 0.10 per year. The dimension of rate of return is time(1. ................
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