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Question
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
Answer
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NARRBEGIN: SA_79_80
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