Question
Mr Arthur is a very big investor in oil industry. He makes his decisions after calculating all the parameters concerning to risk and return associated
Mr Arthur is a very big investor in oil industry. He makes his decisions after calculating all the parameters concerning to risk and return associated with any project. Recently his friend has proposed him two projects given below. Decide which company is better to invest in on the basis coefficient of variation, standard of deviation, expected return, expected return of company A and B, coefficient of variation of company A, and varience of company A . (Wrire your answer as A or B).
possible outcome probability rate of return A rate of return B
boom 0.3 50% 30%
normal 0.4 25% 20%
recession 0.3 -10% 15%
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