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2. Two investments have the following expected returns (net present values) and standard deviation of returns: PROJECT EXPECTED RETURNS ($) STANDARD DEVIATION ($) A 50,000

2. Two investments have the following expected returns (net present values) and standard deviation of returns:

PROJECT EXPECTED RETURNS ($) STANDARD DEVIATION ($) A 50,000 40,000 B 250,000 125,000

Which one is riskier? Why?

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