QUESTION 36 When evaluating an investment or project, Companies need to consider risk as a factor because: OA. A. All projects carry the same level of risk OB. B. All projects do not carry the same level of risk Oc.C. Risk allows a company to measure the relative Net Present Value of an investment OD. D. Both B & C
QUESTION 36 When evaluating an investment or project, Companies need to consider risk as a factor because: OA. A. All projects carry the same level of risk OB. B. All projects do not carry the same level of risk Oc.C. Risk allows a company to measure the relative Net Present Value of an investment OD. D. Both B & C
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
Related questions
Question

Transcribed Image Text:QUESTION 36
When evaluating an investment or project, Companies need to consider risk as a factor because:
OA. A. All projects carry the same level of risk
B. B. All projects do not carry the same level of risk
C.C. Risk allows a company to measure the relative Net Present Value of an investment
OD. D. Both B & C
QUESTION 37
The Coefficient of Variation is the best measure of risk because:
OA. A. It is a relative measure of risk, allowing companies to measure projects with different expected values.
B. B. Is an absolute measure of risk
O C.C. Is harder to calculate
OD. D. Is never used
QUESTION 38
Standard Deviation is an absolute measure of risk because
A. It allows companies to measure projects with different expected values
B. It measures risk in an absolute fashion, risk is measure based on the expected value.
C.It can only be used to compare projects with the same expected value.
D. Both B & C
Expert Solution

This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 3 steps

Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, finance and related others by exploring similar questions and additional content below.Recommended textbooks for you

Essentials Of Investments
Finance
ISBN:
9781260013924
Author:
Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:
Mcgraw-hill Education,



Essentials Of Investments
Finance
ISBN:
9781260013924
Author:
Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:
Mcgraw-hill Education,



Foundations Of Finance
Finance
ISBN:
9780134897264
Author:
KEOWN, Arthur J., Martin, John D., PETTY, J. William
Publisher:
Pearson,

Fundamentals of Financial Management (MindTap Cou…
Finance
ISBN:
9781337395250
Author:
Eugene F. Brigham, Joel F. Houston
Publisher:
Cengage Learning

Corporate Finance (The Mcgraw-hill/Irwin Series i…
Finance
ISBN:
9780077861759
Author:
Stephen A. Ross Franco Modigliani Professor of Financial Economics Professor, Randolph W Westerfield Robert R. Dockson Deans Chair in Bus. Admin., Jeffrey Jaffe, Bradford D Jordan Professor
Publisher:
McGraw-Hill Education