Question: A project's coefficient of variation is 0 . 3 5 . The project has a positive coefficient of correlation of 0 . 2 0 .

A project's coefficient of variation is 0.35. The project has a positive coefficient of correlation of 0.20. The expected value is $4,000. What is the standard deviation?
OutcomeProbability of OutcomeAssumptions$ 1,10020%pessimistic$ 2,10055%moderately successful$ 6,10025%optimistic
What is the expected value of the outcomes?
YearCash Flow1$ 20,000233,000340,000
The firm will also be required to spend $20,000 to close down the project at the end of the three years.

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