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An investor has 2 projects the present value of possible outcome and their respective probabilities are as follows; Project B Project C Outcome $ 4,000
An investor has 2 projects the present value of possible outcome and their respective probabilities are as follows;
Project B | Project C | |||
Outcome | $ 4,000 | $ 5,000 | $ 1,000 | $ 6,000 |
Probability | 0.4 | 0.4 | 0.5 | 0.3 |
- Calculate the Coefficient of Variation
- Which of the 2 projects is most risky?
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