ABC Co is a company with 15 years of experience and currently implementing project A with expected NPV of 155000 USD and standard deviation of 40000 in its operations. Now the company is thinking of implementing an additional project and considering to invest 40% of its resources into it and to choose between projects B and C. These two projects have the following expected probabilities for NPV

Project B Project C

NPV Probability NPV Probability

135000 0,3 157800 0,35

155000 0,4 147523 0,45

-15000 0,3 -20000 0,2

And also the correlation coefficient between the projects ar as follows:

Correlation coefficients:

A&B A&C

0,21 -0,15

What will your recommendation be if the company's policy is to create lower risk portfolio of projects?