Search

banner image

Opt In (Do Not Edit Here)

banner image

Standard deviation method For Risk And Uncertainty In Capital Budgeting

Standard deviation method For Risk And Uncertainty In Capital Budgeting:

finance
[Post Image Courtesy of SuphaKit73 at FreeDigitalPhotos.net]

Two Projects have the same cash outflow and their net values are also the same, standard durations of the expected cash inflows of the two Projects may be calculated to measure the comparative and risk of the Projects. The project having a higher standard deviation in said to be more risky as compared to the other.

If the standard deviation of project X is more then that of project Y, X is more risky.

Standard deviation method For Risk And Uncertainty In Capital Budgeting Standard deviation method For Risk And Uncertainty In Capital Budgeting Reviewed by Blog Editor on Friday, May 26, 2017 Rating: 5

No comments:

Do you have any reasonable comments for this post ? Please feel free to drop them below using the comment box. We will moderate and publish them as soon as possible. Cheers !

Powered by Blogger.