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What is the probability distribution of returns estimated for a proposed project that involves a new ultrasound machine state of the. Probability of. economy. Occurrence
What is the probability distribution of returns estimated for a proposed project that involves a new ultrasound machine
state of the. Probability of.
economy. Occurrence Rate of return
very poor. 0.1. -10%
poor. 0.2. 0.0
average. 0.4. 10.0
good. 0.2. 20.0
very good. 0.1. 30.0
a. What is the expected rate of return on the project
b. What is the project's standard deviation of returns, coefficient of variation (cv) of returns?
c. What type of risk do the standard deviation and CV measure?
d.in what situation is this risk relevant?
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