# Finance 450 Exam 4

 Portfolio -collection of assets-an asset’s risk and return impact how the stock affects the risk and return of the portfolio Risk-Return Trade Off: measured by the portfolio expected return and the standard deviation, just with individual assets An activity as an optimistic time of 11 days, a most likely time of 15 days, and a pessimistic time of 23 days. What is its variance? 4((23-11)/6)sqrd*idk where the 6 came from The critical path for the network activities shown below is _______ with duration _______. A-D-E; 4+4+5=13 Which of the following is determined during the forward pass? Early StartThe forward pass involves determining the Early Start. The early start and finish times are determined during the forward pass, which is a process used to determine all of the early start times and finish times for activities in a project. The backward pass is a process that finds all the late start and finish times.* PERT analysis computes the variance of the total project completion time as The sum of the variances of all activities on the critical path.PERT analysis computes the variance of the total project completion time as the sum of the variances of all activities on the critical path. PERT (Program Evaluation and Review Technique) analysis is a technique used to help project managers monitor and control large, complex projects. An activity has an optimistic time of 11 days, a most likely time of 15 days, and a pessimistic time of 23 days. What is its variance? 4The variance for this activity is 4. Variance (v) is calculated by using the following formula: v = [(b-a) / 6]2, where b = pessimistic time estimate (in this case 23) and a = optimistic time estimate (in this case 11). Therefore: v = [(b-a) / 6]2v = [(23-11) / 6]2v = [12 / 6]2v = 2v = 4 The EF of an activity is the: ES + Activity time Which of the following is a basic assumption of PERT? no activity in the network must be repeated. Which of the following statements regarding Gantt charts is true? Gantt charts are visual devices that show the duration of activities in a project. The critical path for the network activities shown below is _______ with duration _______. B-C-E; 12The critical path for the network activities shown below is B-C-E with duration 12. Critical path activities are those activities that will delay the entire project if they are not completed on time. In this case, activity B is an immediate predecessor for activities C,D, and E. The sum of the duration for this network is 12 (4+6+2 = 12). The Beta distribution is used in project management to Calculate expected activity times.The Beta distribution is used in project management to calculate expected activity times. The beta distribution is used to calculate expected activity times by weighting three time estimates including the optimistic time of an activity, the pessimistic time of an activity, and the most likely time for an activity. The critical path for the network activities shown below is _______ with duration _______. A-D-E; 13The critical path for the network activities shown below is A-D-E with duration 13. Critical path activities are those activities that will delay the entire project if they are not completed on time. In this case, activity A is an immediate predecessor for A and D and the final activity is E. The sum of the duration for this network is 13 (4+4+5 = 13). Which of these statements is NOT true about project​ scheduling? Project scheduling helps make better use of resources by identifying the​ non-critical paths through the network. The critical path of a network is the longest time path through the network. With respect to PERT and​ CPM, slack is the amount of time a task may be delayed without changing the overall project completion time. Which of the following sets is determined during a backward​ pass? LS and LF. What is the shortest duration required to complete an​ activity? Crash Time Which of the following represents the FIRST step to crash a project? computer the crash cost per week for each activity in the network Which of the following is a limitation of PERT and​ CPM? There is the inherent danger of placing too much emphasis on the critical path.
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