which project has a lower absolute risk ? b. whick project has a lower relative risk ? C . which project would you advice the firm to choose ?

Glencoe Algebra 1, Student Edition, 9780079039897, 0079039898, 2018
18th Edition
ISBN:9780079039897
Author:Carter
Publisher:Carter
Chapter4: Equations Of Linear Functions
Section: Chapter Questions
Problem 8SGR
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Question

a firm has two investment projects

project A : expected profit = $ 670

SD = 175

coefficient of varience = 0.26

project B : expected profit = $700

SD = 370

coefficient of variance = 0.53

a. which project has a lower absolute risk ?

b. whick project has a lower relative risk ?

C . which project would you advice the firm to choose ?

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