Content Frame
Note for screen reader users: There is text between the form elements on this page. To be sure that you do not miss any text, use item by item navigation methods, rather than tabbing from form element to form element.
Skip Breadcrumb Navigation
Home  arrow Student Resources  arrow Chapter 14  arrow True or false questions

True or false questions

Try the true or false questions below to test your knowledge of Chapter 14. Once you have completed the test, click on 'Submit Answers for Grading' to get your results.

If your lecturer has requested that you send your results to them, please complete the Routing Information found at the bottom of your graded page and click on the 'E-Mail Results' button. Please DO NOT forward your results unless your lecturer has specifically requested that you do so.

This activity contains 6 questions.

Question 1.
Using a probability tree is a poor way of quantifying the risk of a prospective investment proposal when subsequent cash flows are dependent on previous cash flows.

Open Hint for Question 1 in a new window.
End of Question 1

Question 2.
There is approximately a 32% probability that the actual value (outcome) will fall outside one standard deviation of the expected value of a normal distribution.

Open Hint for Question 2 in a new window.
End of Question 2

Question 3.
The coefficient of variation equals the standard deviation dividend by the expected value of a variable; say the return on a particular investment.

Open Hint for Question 3 in a new window.
End of Question 3

Question 4.
The total risk of an investment project is measured by its coefficient of variation.

Open Hint for Question 4 in a new window.
End of Question 4

Question 5.
Managerial options never decrease project worth.

Open Hint for Question 5 in a new window.
End of Question 5

Question 6.
The coefficient of variation is a measure of the mean of a distribution to the standard deviation of a distribution. It is a measure of relative risk.

Open Hint for Question 6 in a new window.
End of Question 6

Copyright © 1995 - 2020 Pearson Education . All rights reserved.
Legal Notice | Privacy Policy | Permissions

Return to the Top of this Page