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A primary advantage of the mean-standard deviation model (as presented in this c

ID: 3171271 • Letter: A

Question

A primary advantage of the mean-standard deviation model (as presented in this course) is that: (Points : 5) it generally eliminates the "subjective" nature of the risk assessment that would otherwise be involved it permits the analyst to communicate his assessment of risk, without incorporating his personal risk preference function into the report it usually permits development of objective estimates of risk associated with forecasts of future rental revenue, through the use of traditional statistical sampling techniques all of the above

Explanation / Answer

Solution:

A primary advantage of the mean-standard deviation model is that:

it usually permits development of objective estimates of risk associated with forecasts of future rental revenue, through the use of traditional statistical sampling techniques.

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