Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

The owner of Crmerie du Nord wants to open two new branches. Here are the possible earnings per hour and the probabilities that they will

The owner of Crèmerie du Nord wants to open two new branches. Here are the possible earnings per hour and the probabilities that they will occur:

ProjetA

Gains (en$/hr)

Probabilits

18

0,20

30

0,15

37

0,10

40

0,05

45

0,50

ProjectB

Gains (en$/hr)

Probabilits

20

0,35

27

0,25

30

0,25

35

0,10

42

0,05


Question4

Which project has the highest expected return? ( 6 points of which 2 points are allocated for calculations )

[Insert your answer here.]


Question5

Which project has the lowest expected variance? ( 6 points of which 2 points are allocated for calculations )

[Insert your answer here.]


Question6

Using the coefficient of variation as a relative measure of risk, determine which of the two projects appears riskier. ( 8 points of which 4 points are allocated for the calculation of the coefficients of variation )

[Insert your answer here.]

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Income Tax Fundamentals 2013

Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill

31st Edition

1111972516, 978-1285586618, 1285586611, 978-1285613109, 978-1111972516

More Books

Students also viewed these Finance questions