A Project Has Three Paths

question 99

Multiple Choice

A project has three paths.A-B-C has a length of 25 days.A-D-C has a length of 15 days.Finally,A-E-C has a length of 20 days.Which one of the following statements is TRUE?

• A)A-D-C is the critical path.
• B)A-B-C has the most slack.
• C)The expected duration of this project is 25 days.
• D)The expected duration of this project is 25 + 15 + 20 = 60 days.

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Definitions:

Continuous Compounding

The mathematical limit that compound interest can reach if it’s computed and added to the principal balance continuously, leading to exponential growth.

Time Value

Time Value refers to the additional amount that an investor is willing to pay for an option or other financial instrument due to its potential to increase in value over time.

Time Value

The portion of an option's premium that is based on the amount of time until the expiration of the option contract.

Volatility

Refers to the degree of variation in the price of a financial instrument over time, indicating the risk associated with the price changes of that instrument.