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A consensus of experts has agreed on the following table of potential NPVs and their likelihoods for a capital budgeting project that involves considerable uncertainty and is therefore risky:

PROBABIlITY NPV ($thousands)
0.15 (300)
0.35 (50)
0.45 500
0.05 1,200

a) Find the expected NPV

b) Measure the risk of this project using the usual statistical summary for this purpose. Name of the measure: and its numeric value:

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Statistics and Probability, Statistics

Category:- Statistics and Probability
Reference No.:- M9372142

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