____ is not a method of incorporating an adjustment for risk into the capital budgeting analysis.
A) Discriminant analysis
B) Risk-adjusted discount rate
C) Sensitivity analysis
D) Simulation

Question

____ is not a method of incorporating an adjustment for risk into the capital budgeting analysis.​
A) ​Discriminant analysis
B) ​Risk-adjusted discount rate
C) ​Sensitivity analysis
D) ​Simulation

Quizplus · Accepted Answer

Discriminant analysis is a statistical method used to predict a categorical dependent variable based on a set of independent variables. It is not a method of incorporating an adjustment for risk into the capital budgeting analysis. The other options listed (B, C, and D) are all ways to adjust for risk in capital budgeting analysis.

____ Is Not a Method of Incorporating an Adjustment for Risk