In order to evaluate risk, management may also set qualitative risk classes. Rank these four projects from the least to the most risky.
Completely new market in United States.
Completely new market in South America.
Addition to normal product line.
Repair to old machinery.
A) 4, 3, 1, 2
B) 1, 2, 3, 4
C) 3, 4, 1, 2
D) 4, 3, 2, 1
Correct Answer:
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Q42: A project's coefficient of variation is 0.55.
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Q62: Projects that are negatively correlated
A) reduce the
Q64: Simulation models allow the planner to:
A) reduce
Q65: An al tool which helps to organize
Q66: Using the risk-adjusted discount rate approach, projects
Q68: The coefficient of correlation
A) takes on values
Q68: Projects that are totally uncorrelated provide:
A) no
Q74: The lower the coefficient of correlation, the
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