mat 211 ulrich M1-1.2.1 quiz

mat 211 ulrich M1-1.2.1 quiz - (1 of 10 Which of the...

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(1 of 10) Which of the following is a correct formula? ROI = 1 - IRR ROI = IRR - 1 IRR = 1 - ROI IRR = ROI – 1 None of the above. Submit Answer Skip Question I Am Finished (2 of 10) An IRR’s distribution’s possible outcome probabilities sum to 101%; what do we do? We multiply each outcome’s expected return with its associated probability of occurrence and finish the analysis. Shave off an equal proportion of a percentage point from each outcome’s probability based on the number of listed outcomes; this will make the sum of the probabilities equal 100%. Find the outcome with the highest individual probability and remove 1% from it; if there are two or more outcomes with the same highest probability, then remove an equal share from each. There is no way to know without knowing what the actual event is. None of the above. (3 of 10) ∑[P($)][$] / Investment = ROI IRR + 1
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Both of the above. There is no way to know without knowing what the actual event is.
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  • Fall '08
  • SEAL
  • Probability, Quiz, Probability space

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