The Risk of an Asset Can Be Measured by Its

question 24

True/False

The risk of an asset can be measured by its variance, which is found by subtracting the worst outcome from the best outcome.

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Definitions:

Cost Reimbursable Contract

A type of contract where a contractor is paid for all of its allowed expenses to a set limit plus additional payment to allow for a profit.

Time And Material Contracts

A contractual arrangement that pays for labor at a fixed hourly rate and materials at cost.

Project Risk

Potential problems or uncertainties that could impact the successful completion, quality, or timeline of a project.

Day Rate Basis

A method of compensation where payment is made based on a daily rate rather than on the completion of tasks.