Two Projects Have the Following NPVs and Standard Deviations$\begin{array} { l c c }
& \text { Project } A & \text { Project } B \
\text { NPV } & 200 & 300 \
\text { Standard deviation } & 75 & 100
\end{array}$

Question

Two Projects Have the Following NPVs and Standard Deviations$\begin{array} { l c c } 
& \text { Project } A & \text { Project } B \
\text { NPV } & 200 & 300 \
\text { Standard deviation } & 75 & 100
\end{array}$

Examlex · Accepted Answer

The Answer is Since the two projects have different NPVs and different standard deviations,relative risk can be measured by the coefficient of variation.Project A has a CV of.375,project B .333.Thus,the relative risk of project B is less.

Two Projects Have the Following NPVs and Standard Deviations Which of the Two Projects Is More Risky

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Two Projects Have the Following NPVs and Standard Deviations Which of the Two Projects Is More Risky

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Correct Answer:VerifiedShow Answer

Correct Answer:
Verified