A Project Has Four Activities: A, B, C, and D

question 66

Multiple Choice

A project has four activities: A, B, C, and D. The amount spent on each activity to date is $22K, $14K, $12K, and $28K respectively. The planned percentages complete for the current date are 90%, 80%, 70%, and 20% respectively. The actual percentages complete for the current date are 100%, 90%, 75%, and 10% respectively. The actual cost of the work performed to date is $40K. What is the cost performance index for the project?

• A) Less than zero
• B) 0 − 1.05
• C) 1.051 − 1.10
• D) 1.11 − 1.15
• E) Over 1.15

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Definitions:

Hedge Ratio

A ratio used to determine the amount of derivatives needed to hedge a particular exposure, indicating the relationship between the position size in hedging instruments and the size of the exposure.

American Put Options

Contracts that give the holder the right, but not the obligation, to sell a specified amount of an underlying security at a specified price within a specified time period.

European Puts

Options contracts giving the holder the right, but not the obligation, to sell a specific amount of an underlying asset at a predetermined price within a specified time frame.

Black-Scholes Model

A mathematical model used to price European options, factoring in stock volatility and time to expiration.