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Swift Manufacturing must choose between two projects. The annual rate of return and the related probabilities given in the following table summarize the firm's analysis
Swift Manufacturing must choose between two projects. The annual rate of return and the related probabilities given in the following table summarize the firm's analysis to this point. a. For each project, compute - the expected value of return and standard deviation of the returns. b. Which project would you consider less risky? Why? .01 .04 Project 225 Rate of Return Probability -10% 102 20% .05 30% 40% 45% 50% 60% .10 70% .05 Box .04 100% Project 522 Rate of Return Probability 10% .05 15% .10 20% .10 25% 30% 35% 40% 45% 50% .01
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