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The Glad It's Finally Over Company is considering three possible capital projects for next year. Each project has a one year life and project returns
The Glad It's Finally Over Company is considering three possible capital projects for next year. Each project has a one year life and project returns depend on the state of the economy. The estimated rates of return are shown in the following tables: State of the Economy Probability of Each State Occurring Rates of Return if State Occurs Project A Project B Boom .40 6% 2596 Normal .40 8% 6% Recession .20 15% -5% Statistic Project A Project B Expected Return 8.6096 11.4096 Standard Deviation 3.32% 11.81% %. (Fill in Given these probabilities and possible rates of return, the correlation of the cash flows for the projects is the blank with your calculation result of two decimal places)
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