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Suppose We Compare the Difference Between the NPV of a Financial

Question 17

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Suppose we compare the difference between the NPV of a financial model in which the means are entered for all input random variables and the NPV of a financial model in which the most likely values are entered for all input random variables.If we see a large difference between the NPV's,this illustrates:


A)  the value at risk (VAR)  
B)  the effect of randomness 
C)  the flaw of averages 
D)  the bias of the analyst

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