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Chapter 6: Risk and Project Appraisal
Multiple choice questions

Try the following multiple choice questions to test your knowledge of Chapter 6. Once you have answered the questions, click on Submit Answers for Grading to get your results.

1 .       A project has a 20% probability of producing an NPV of £1m, a 60% probability of producing an NPV of £1.3m and a 20% probability of producing an NPV of £1.6m. Identify the expected returns and standard deviation of this project: 



2 .       A proposed project has an expected NPV of £496,000 and standard deviation of NPV of £1,600,000. The probability of the NPV being greater than zero is: 



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