Examlex

Solved

Explain Why a Financial Manager of a Large Company Should

question 5

Essay

Explain why a financial manager of a large company should use the standard deviation as the measure of risk to determine the discount rate?


Definitions:

Potential Output

The upper limit of real GDP sustainable over an extended period without inflating the inflation rate.

Phillips Curve

A graphical representation showing an inverse relationship between the rate of unemployment and the rate of inflation in an economy.

Unemployment Rate

The percentage of the employment pool that is not working but is actively on the lookout for a job opportunity.

Inflation Rate

The rise in the overall cost of goods and services across an economy during a certain timeframe, expressed as a percentage.

Related Questions