expected to have a return of15%.? In the future project A is expected to have a return of 17%, and project B is expected to have a return of15%. The standard deviation for project A is expected to be 12% and standard deviation for project B is expected to be 8%.
a) Based on the standard deviation only, which project is more risky?
b) Based on coefficient of variation only, which project is more risky?
c) Which is a better measure; the standard deviation or coefficient of variation, given that the
Expected returns of the two projects are different?
a) Based on the standard deviation only, which project is more risky?
b) Based on coefficient of variation only, which project is more risky?
c) Which is a better measure; the standard deviation or coefficient of variation, given that the
Expected returns of the two projects are different?