If You Have an Optimistic Time of 4 Weeks,a Most

question 72

Multiple Choice

If you have an optimistic time of 4 weeks,a most likely time of 6 weeks and a pessimistic time of 14 weeks on an activity in a CPM managed project,what is the expected time for this activity?

• A)4 weeks
• B)5 weeks
• C)6 weeks
• D)7 weeks
• E)8 weeks

---

Definitions:

Expected Return

The weighted average of all possible returns for a given investment, with weights being the probabilities of each outcome.

Risk-Free Rate

The hypothetical return rate on an investment that carries no risk of losing money, commonly illustrated by the interest rate on government securities.

Multifactor Model

A financial model that employs multiple factors in its calculations to explain market phenomena and/or equilibrium asset prices.