Alternative a and Alternative B Have the Same ENPV

question 37

Multiple Choice

Alternative A and Alternative B have the same ENPV. When graphing possible results from the alternative projects, Alternative A has fewer values clustered around the ENPV and has a greater number of lower and higher possible values than Alternative B. What can be concluded when comparing Alternative A to Alternative B?

• A) A is not as risky as B because its value distribution indicates a higher upside probability.
• B) A is not as risky as B because its value distribution indicates lower overall variability.
• C) A is riskier than B because its value distribution indicates a lower overall variability.
• D) A is not as risky as B because its values are more equally spread over the entire value range.
• E) A is riskier than b because its value distribution indicates a higher downside probability.

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Definitions:

Depression

A dilemma of mental health displayed by a consistent state of sadness or an unenthusiastic attitude towards activities, markedly disrupting daily living standards.

Bipolar Disorder

Bipolar disorder is a mental health condition marked by extreme mood swings, including emotional highs (mania or hypomania) and lows (depression).

Major Depressive Disorder

A clinical condition characterized by persistent sadness, lack of interest in activities, and other symptoms that interfere with daily functioning.

Serotonin And Norepinephrine

Neurotransmitters involved in regulating mood, anxiety, happiness, and alertness, often targeted by certain medications to treat depression and other mood disorders.