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Divide.
Real Option
An approach in financial management that values investment options as if they were financial options, focusing on the flexibility of managerial decisions in response to market changes.
IRR
Stands for Internal Rate of Return, a financial metric used to estimate the profitability of potential investments.
Variance
A statistical measure that indicates the spread of data points in a dataset around the mean, reflecting the data's volatility.
Risk Averse
The tendency to prefer certainty over risk, where an individual opts for the investment with the least potential for financial loss.
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