Mountain Ski Corp. was set up to take large risks and is willing to take the greatest risk possible. Lakeway Train Co. is more typical of the average corporation and is risk-averse.

Projects. Returns: Expected Value. Standard Deviation

A $310,000 $138,000

B 719,000 428,000

C 89,000 110,000

D 135,000 215,000

a-1.Compute the coefficients of variation.(Round your answers to3decimal places.)

Coefficient of Variation

Project A ________________

Project B ________________

Project C ________________

Project D ________________

a-2.Which of the following four projects should Mountain Ski Corp. choose?

Project A

Project B

Project D

Project C

b.Which one of the four projects should Lakeway Train Co. choose based on the same criteria of using the coefficient of variation?

Project B

Project A

Project C

Project D