e. CAGR (compound average advancement return). A money investor is definitely thinking about the net return gained calendar year right after 12 months, Hence utilization of geometric is more proper. As a result we'd use geometric average for possibility absolutely free level and chance top quality for every on the 3 divisions, as presented in exhibit 5 with the case.
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Prevailing economic predicament: It is actually not likely that the government will increase budgetary allocations.
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