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28) A firm has the NPV of a project based on three possible economic conditions and their probabilities given below. The expected NPV is $59.2
28) A firm has the NPV of a project based on three possible economic conditions and their probabilities given below. The expected NPV is $59.2 million. What is the standard deviation for the project's NPV?
Economic Condition | Probability of outcome | NPV ($ million) |
Recession | .10 | 22 |
Boom | .60 | 74 |
No change | .30 | 42 |
A) 18.94
B) 17.42
C) 20.64
D) 17.24
E) 19.89
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