Generally, the Higher the Coefficient of Variation a Project Has

question 79

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.

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Definitions:

Stanford-Binet

A standardized test that assesses intelligence and cognitive abilities in individuals, used widely in educational settings.

Normal Distribution

A symmetrical distribution with a majority of the cases falling in the middle of the possible range of scores and few scores appearing toward the extremes of the range.

WAIS-III

The Wechsler Adult Intelligence Scale-Third Edition, a tool used to assess the intelligence and cognitive ability of adults.

Intelligence Test

An assessment tool designed to measure a person's intellectual abilities and potential.