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Suppose We Compare the Difference Between the NPV of a Financial

Question 24

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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
E) None of these options

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