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summarised in ti A firm has two potential investment projects. The project information is summarised in the table below. Waco DDDDD Project A Project B

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summarised in ti A firm has two potential investment projects. The project information is summarised in the table below. Waco DDDDD Project A Project B Expected value of profit $670 $700 Standard deviation of profit 175 370 Coefficient of variation of profit 0.26 0.53 Which project has a lower absolute risk level? Which project has a lower relative risk level? Which project would you advise the firm to choose? Explain your answers. summarised in ti A firm has two potential investment projects. The project information is summarised in the table below. Waco DDDDD Project A Project B Expected value of profit $670 $700 Standard deviation of profit 175 370 Coefficient of variation of profit 0.26 0.53 Which project has a lower absolute risk level? Which project has a lower relative risk level? Which project would you advise the firm to choose? Explain your answers

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