Fogelberg’s Inequality 2 ) min( ) max( ) ( x x x-≤ σ This is a handy rule to know, and can help narrow down the choices on a multiple choice exam without a lot of number crunching. Illustration: Think of the coin flip problem. If you have a 50-50 chance of getting a NPV of either 20 or 10, then your mean is 15 and your standard deviation is 5. Your standard
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This note was uploaded on 02/22/2011 for the course FIN 3331 taught by Professor Nowacki during the Spring '09 term at Troy.