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Karl's office has always used Bentley computers. His technical people have suggested that he switch all his employees over to Best computers. Karl is reluctant because it will mean not only replacing all the computers but also buying all new software and taking the time to train everyone. Karl is worried about
Standard Deviation
A statistical measure that quantifies the amount of variation or dispersion of a set of data values.
Risk Aversion
The premise that most people prefer lower risk investments when expected returns are about equal.
NPV
Net Present Value; a method used in capital budgeting to evaluate the profitability of an investment or project.
Abandonment Option
In project management and finance, the option to cease investment in a project if it doesn't meet certain criteria, minimizing losses.
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