Question

Which of the following are the steps we take to find the standard deviation of a project using scenario analysis? We sum the results of each scenario's NPV minus the expected NPV, squared, divided by the number of scenarios that we have. We then find the square root of this to get the standard deviation of the project. We sum the results of each scenario's NPV minus the expected NPV, squared, times the probability of the scenario. We then divide this by the number of scenarios to get the standard deviation of the project. We sum the results of each scenario's cash flows minus the expected cash flows, squared, times the probability of the scenario. We then find the square root of this to get the standard deviation of the project. We sum the results of each scenario's NPV minus the expected NPV, squared, times the probability of the scenario. We then find the square root of this to get the standard deviation of the project.

          Which of the following are the steps we take to find the standard deviation of a project using scenario analysis?
We sum the results of each scenario's NPV minus the expected NPV, squared, divided by the number of scenarios that we have. We then find the square root of this to get the standard deviation of the project.
We sum the results of each scenario's NPV minus the expected NPV, squared, times the probability of the scenario. We then divide this by the number of scenarios to get the standard deviation of the project.
We sum the results of each scenario's cash flows minus the expected cash flows, squared, times the probability of the scenario. We then find the square root of this to get the standard deviation of the project.
We sum the results of each scenario's NPV minus the expected NPV, squared, times the probability of the scenario. We then find the square root of this to get the standard deviation of the project.

Added by Ashley P.

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