Venture Investors Generally Use Which One of the Following Target

question 62

Multiple Choice

Venture investors generally use which one of the following target rates to discount the projected cash flows of ventures in the "startup" stage of their life cycles:

• A) 20%
• B) 25%
• C) 40%
• D) 50%

---

Definitions:

Mode

The value that appears most frequently in a data set, representing the highest peak in a distribution.

Extreme Values

The lowest or highest points in a data set, which are significant for analyzing behavior in statistical models, particularly in risk management and survival analysis.

Median

The middle value in a list of numbers arranged in ascending order, or the average of the two middle numbers if the list has an even number of items.

Central Location

A central or typical value for a probability distribution, often represented by the mean, median, or mode.