Standard deviation measures

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1. Standard deviation measures:

A) the average distance each observation is from the mean.

B) total risk.

C) idiosyncratic risk.

D) market risk.

E) More than one of the above answers is correct

2. What is the internal rate of return on the CNC machine in the previous problem? $100,000 initial cost, $5,000/year maintenance cost, $35,000/year benefit. The machine will be in use for 10 years and salvaged at the end of 10 years for $20,000.

A. 10%

B. 18%

C. 20%

D. 28%

Reference no: EM131923756

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