Question: Swift Manufacturing must choose between two asset purchases. The annual rate of return and the related probabilities given in the following table summarize the firm's

Swift Manufacturing must choose between two asset purchases. The annual rate of return and the related probabilities given in the following table summarize the firm's analysis to this point.


Swift Manufacturing must choose between two asset purchases. The


a. For each project, compute:
(1) The range of possible rates of return.
(2) The expected return.
(3) The standard deviation of the returns.
(4) The coefficient of variation of the returns.
b. Construct a bar chart of each distribution of rates of return.
c. Which project would you consider less risky?Why?

Project 257 Project 432 Ratc of return Probability Ratc of return bability Rate of rcturn -10% 10 20 30 40 45 50 60 70 80 100 0.01 0.04 0.05 0.10 0.15 0.30 0.15 0.10 0.05 0.04 0.01 10% 15 20 25 30 35 40 45 50 0.05 0.10 0.10 0.15 0.20 0.15 0.10 0.10 0.05

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