The Probability of Occurrence of Risk Events Is Lower near the Beginning

question 63

True/False

The probability of occurrence of risk events is lower near the beginning of a project and higher near the end of the project.

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Definitions:

Expected Returns

The expected yield from an investment, considering the likelihood of different results.

Positive Variance

The difference between actual performance and expected performance where the actual outcome is more favorable than what was anticipated.

Weights

In finance, it refers to the proportion of each component's value in a portfolio or in a weighted average calculation.

Expected Return

The probable return on an investment, taking into account all possible outcomes or the aggregate return that an investor anticipates over a certain period.