Suppose We Compare the Difference Between the NPV of a Financial

question 57

Multiple Choice

Suppose we compare the difference between the NPV of a financial model in which the means are entered for all input random variables and the NPV of a financial model in which the most likely values are entered for all input random variables.A large difference between the NPV's demonstrate the

• A)value at risk (VAR).
• B)effect of randomness.
• C)flaw of averages.
• D)bias of the analyst.

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