The standard deviation of 
equals the population standard deviation divided by the square root of the sample size,or equivalently, 
.
Definitions:
Investment Required
The amount of capital needed to undertake a project, purchase assets, or start a business to generate future returns.
Capital Budgeting
The process of evaluating and selecting long-term investments that are in line with the goal of shareholder wealth maximization.
Discount Rate
The interest rate used to discount future cash flows to their present value, often used in investment appraisal.
Discount Rate
The interest rate charged to commercial banks and other depository institutions for loans received from the Federal Reserve's discount window.
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