A project consists of six consecutive tasks that have average duration and worst-case duration estimates (in days) as shown in the table. Use Newbold's method to determine the aggregated two sigma buffer for this project
Activity Average Worst-Case
A 14 21
B 20 28
C 16 22
D 8 15
E 9 18
F 11 18
A) 44 days
B) 6 days
C) 17 days
D) 9 days
D
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When the assets and liabilities of an FI are not equal in size, efficient hedging of interest rate risk can be achieved by
A. increasing the duration of assets and increasing the duration of equity. B. issuing more equity and reducing the amount of borrowed funds. C. not exactly matching the maturities of assets and liabilities. D. issuing more equity and investing the funds in higher-yielding assets. E. efficient hedging cannot be achieved without the use of derivative securities.
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A critical path is any sequence of activities between a project's start and finish
Indicate whether the statement is true or false
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