Each of the Following Is Considered a Limitation of the Real

Multiple Choice

Each of the following is considered a limitation of the real options model of investment valuation except:

A) the model is based on cash flow projections, rather than any intangibles.
B) cumulative volatility adds an explicit incorporation of uncertainty into the model.
C) the risk exposures are increased relative to other valuation models.
D) the complexity of the model may act as a deterrent to IT managers from using it.