Will the answer in part 1 overestimate or underestimate the volatility if the experts and management are in fact only 90% confident?
You are a project manager and need the volatility to evaluate a major project for your company. The project has a value of $100 million today. 1. The technical experts and management believe, with 95% confidence, that the project should be worth $350 million or $50 million in 4 years, what is the annualized volatility? […]