Foundations of Financial Management Study Set 5
Quiz 13: Risk and Capital Budgeting
About _____ as Many Boys as Girls Are Classified as Having
Computers are helpful for "what if" simulations, but so far they are not able to assess project risk.
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Sensitivity analysis helps the financial planner to determine how sensitive shareholders will be to changes in investment strategy.
As the time horizon becomes shorter, more uncertainty enters the forecast.
As the time horizon increases, the standard deviation for each forecast of cash flow usually increases.
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