P8-8 Standard deviation versus coefficient of variation as measures of risk Greengage, Inc., a successful nursery, is considering several expansion projects. All the alterna- tives promise to produce an acceptable return. Data on four possible projects follow. Project B D Expected return 12.0% 12.5 13.0 12.8 Range 4.0% 5.0 6.0 4.5 Standard deviation 2.9% 3.2 3.5 3.0 a. Which project is least risky, judging on the basis of range? b. Which project has the lowest standard deviation? Explain why standard devia- tion may not be an entirely appropriate measure of risk for purposes of this com- parison. c. Calculate the coefficient of variation for each project. Which project do you think Greengage's owners should choose? Explain why