An Approach That Uses a Number of Outcome Estimates to Get

question 45

Multiple Choice

An approach that uses a number of outcome estimates to get a sense of the variability among potential returns is

• A) the discounted cash flow technique.
• B) the net present value method.
• C) risk analysis.
• D) sensitivity analysis.

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Definitions:

Recency Effect

The tendency to recall the last items in a sequence more readily than those in the middle.

Sensory Decay

The decline in the ability of a sensory system to detect or accurately interpret information over time or due to external factors.

Retrograde Amnesia

A loss of memory for experiences that occurred shortly before a loss of consciousness.

State-Dependent Memory

The phenomenon where information learned in a particular state of mind is more easily recalled when in that same state.