# Higher standard deviation in cash flows and associated risks

Explain how unexpected national and/or international events can create a higher standard deviation in cash flows and increase the risk associated with long-lived projects. Give examples of events that produced such results.

© BrainMass Inc. brainmass.com June 3, 2020, 8:28 pm ad1c9bdddfhttps://brainmass.com/business/cash/higher-standard-deviation-cash-flows-associated-risks-139065

#### Solution Preview

Standard Deviation

Variance is the arithmetic mean (average) of the square of the difference between the value of an observation and the arithmetic mean of the value of all observations. It is also referred to as the second moment about the mean. Standard Deviation is the square root of Variance.

Implication on Portfolio Management

Standard deviation essentially reports a security's or fund's volatility, which indicates the tendency of the returns to ...

#### Solution Summary

Your tutorial is four paragraphs with references.

$2.19