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If σ\sigma Is the Standard Deviation of a Project with Expected Returns

question 43

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If σ\sigma is the standard deviation of a project with expected returns $100 and σ\sigma 2 = 4,the coefficient of variation is:

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Definitions:

Uncollectible Accounts

Accounts receivable that a company does not expect to collect and writes off as a bad debt expense.

Outstanding Accounts Receivable

Amounts due to a company from customers for goods or services provided on credit but not yet paid.

Bad Debt Percentage

Bad debt percentage is the proportion of receivables that a company expects not to collect, used in estimating the allowance for doubtful accounts.

Allowance

In accounting, an estimate for future adjustments to accounts receivable, reflecting debts that might not be collectible.

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