Quantification of risk is the easiest part of incorporating risk into capital budgeting.

Question

Quizplus · Accepted Answer

Quantifying risk involves assigning numerical values to potential risks, which can be difficult and time-consuming. Incorporating those quantified risks into a capital budgeting decision involves more complex analysis, including consideration of risk tolerance, probability distributions, and potential mitigation strategies, among other factors.

Quantification of Risk Is the Easiest Part of Incorporating Risk