Assume you are considering two projects, Stock A and Stock B, for which the following estimated data have been made available in Table 1: i) Calculate the expected rate of return, [E(NPV)] for both the projects. ii) Calculate the standard deviation, () for both the projects. iii) Find the Coefficient of Variation (CV) for both projects and discuss which project is a better investment. iv) Find the Semi-Variance (SV) and Semi Standard Deviation (SSD) for both projects and discuss which project is a better investment.

PROBABILITY POSSIBLE NPV OF A POSSIBLE NPV OF B

0.30 1000 800

0.25 1200 1100

0.20 1400 1500

0.25 1600 900

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