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Explain How the Weights of Each Security Are Determined for WACC

question 71

Essay

Explain how the weights of each security are determined for WACC.

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Definitions:

Median

The middle value or point in a data set, where half the data lies above and half below it.

Empirical Rules

Statistical rules that allow for the determination of probability within a normal distribution, stating percentages of data that lie within certain standard deviations from the mean.

Standard Deviations

Measures of how spread out the numbers in a dataset are, indicating the degree of variation from the mean.

Observations

Individual data points or measurements collected during an experiment or survey.

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