You Have Just Computed a Z=2

question 78

Multiple Choice

You have just computed a Z=2.55 in a CPM analysis of a critical path for a project.Based on this Z value what is the probability of completing this project on time?

• A)0.76543
• B)0.67543
• C)0.99061
• D)0.99461
• E)You cannot tell based on the information given

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Definitions:

Unique Risk

Also known as unsystematic risk, it refers to the risk associated with a specific company or industry.

Diversifiable Risk

The portion of an investment's risk that can be reduced or eliminated through the practice of diversifying one's investment portfolio across various assets.

Systematic Risk

The inherent risk affecting the overall market or a particular sector, which cannot be eliminated through diversification.

Market Risk

The risk of losses in investments due to factors that affect the entire market or asset class, such as economic changes or political events.