Examlex

Solved

Generally, the Higher the Coefficient of Variation a Project Has

question 89

True/False

Generally, the higher the coefficient of variation a project has, the higher the discount rate it should be assigned.
A higher coefficient of variation denotes greater risk, so investors will require a higher rate of return-thus (all else being equal), a "risk-adjusted" rate.


Definitions:

Chrysler Building

An iconic Art Deco skyscraper located in New York City, known for its distinctive terraced crown and once the world's tallest building.

Stainless Steel

An alloy of iron, chromium, and, often, nickel, known for its resistance to rust and corrosion, making it a popular material in architecture, appliances, and medical equipment.

José Clemente Orozco

A Mexican muralist and painter, known for his bold, graphic style and social and political themes.

Hanover, NH

A town in New Hampshire, United States, home to Dartmouth College and known for its vibrant cultural scene and natural surroundings.

Related Questions