The various capital budgeting risk analysis techniques all estimate the standard deviation of an investment's cash flows.

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Capital budgeting risk analysis techniques include a variety of methods such as sensitivity analysis, scenario analysis, and Monte Carlo simulation, among others. Not all of these techniques estimate the standard deviation of an investment's cash flows. Some focus on different ways to assess risk, like changing one variable at a time (sensitivity analysis) or evaluating specific scenarios (scenario analysis).

The Various Capital Budgeting Risk Analysis Techniques All Estimate the Standard