Question: D. Standard deviation $100, expected return $80 24. In order to evaluate risk, management may also set qualitative ris projects from least risky to most
D. Standard deviation $100, expected return $80 24. In order to evaluate risk, management may also set qualitative ris projects from least risky to most risky, all other things being equal. 1. Completely new market in United States. 2. Completely new market in South America. 3. Addition to normal product line. 4. Repair to old machinery. A. 4, 3, 1, 2 B. 1, 2, 3, 4 C. 3, 4, 1, 2 D. 4, 3, 2,1 25. Place the following investment decisions in order from th C. 20. Modigliani and Associates has forecasted the following payoffs from a project: Outcome Probability of Outcome So S3.500 $6.000 20% 60% 20o Assumptions pessimistic moderately successful optimistic What is the expected value of the outcomes? A. $0 $3,300 $3,700 Cannnt he determined, Depends upon which prediction is correct. D
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