The Amount of Variability of a Financial Output Caused by Different

question 30

Multiple Choice

The amount of variability of a financial output caused by different inputs can be investigated using

• A)the NPV function.
• B)a histogram of the NPV.
• C)a tornado graph of NPV.
• D)the value at risk (VAR).

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Definitions:

Frame of Reference

A set of criteria or stated values in relation to which measurements or judgments can be made.

Empathy

True understanding of another’s perspective.

Sympathy

Feelings of pity and sorrow for someone else's misfortune, often involving an understanding of their emotional state and a desire to offer comfort.

Verbal Behavior

The aspect of human behavior that involves the use of language and speech for communication.