Calculating a single cost or benefit figure that takes risk into account involves:
A)estimating how likely different outcomes are and estimating the financial implications of each outcome.
B)calculating expected value.
C)taking the average of each possible outcome of a future event,weighted by its probability of occurring.
D)All of these statements are true.

Question

Quizplus · Accepted Answer

Calculating a single cost or benefit figure that takes risk into account involves all of these statements- estimating how likely different outcomes are and estimating the financial implications of each outcome, calculating expected value, and taking the average of each possible outcome of a future event, weighted by its probability of occurring. Therefore, option D is correct.

Calculating a Single Cost or Benefit Figure That Takes Risk