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Which of the Following Scenarios Carries the Least Risk of NOT

Question 9

Multiple Choice

Which of the following scenarios carries the least risk of NOT being able to meet required payments (capital expenditure, dividend, interest and principal requirements) totaling $96 million?


A) Expected cash flow, $116 million, standard deviation $5 million
B) Expected cash flow, $107 million, standard deviation $5.5 million
C) Expected cash flow, $112 million, standard deviation $8 million
D) Expected cash flow, $134 million, standard deviation $38 million

Correct Answer:

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