If the Letters A, B, C, D, E, and F

question 143

Multiple Choice

If the letters A, B, C, D, E, and F are to be used in a five-letter code, how many different codes are possible if repetitions are not permitted?

• A) 7,776
• B) 1,296
• C) 720
• D) 625

---

Definitions:

Portfolio Theory

A financial model that describes how to assemble a diversified portfolio to maximize returns and minimize risk based on expected returns and the variance of each asset.

Capital Budgeting

The process by which investors and managers evaluate the long-term investments and projects of a company in terms of their potential profitability and benefits.

Probability Distribution

A probability distribution is a statistical function that describes all the possible values and likelihoods that a random variable can take within a given range.

NPV

Net Present Value; a method used in capital budgeting to evaluate the profitability of an investment or project, calculating the net difference between present value of cash inflows and outflows over a period.