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Consider the following statements: (1) Expected value of cash flows is equal to the arithmetic average of the cash flows. (2) In the case of capital budgeting, the higher the standard deviation better the project is. (3) In the case of dependent cash flows, the risk is measured with reference to joint probabilities.Select the correct statement.

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Consider the following statements:<br /> (1) Expected value of cash flows is equal to the arithmetic average of the cash flows.<br /> (2) In the case of capital budgeting, the higher the standard deviation better the project is.<br /> (3) In the case of dependent cash flows, the risk is measured with reference to joint probabilities.<br />Select the correct statement.






 
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