Question: a . a . Which project is least risky, based on the range of possible outcomes? ( Select the best answer below. ) A .
a aWhich project is least risky, based on the range of possible outcomes?Select the best answer below.
AProject Upper D
Project Upper D
BProject Upper B
Project Upper B
CProject Upper C
Project Upper C
DProject Upper A
Project Upper A
Part
bWhich project is least risky, judging on the basis of standard deviation?Select the best answer below.
AProject Upper C
Project Upper C
BProject Upper A
Project Upper A
CProject Upper B
Project Upper B
DProject Upper D
Project Upper D
Part
Explain why standard deviation may not be an entirely appropriate measure of risk for purposes of this comparison. Select the best answer below.
A
The standard deviation measure fails to take into account both the riskfree rate and the return of the investment. Investors would prefer higher return but less volatility, and the coefficient of variation provides a measure that takes into account both aspects of investors' preferences.
B
The standard deviation measure fails to take into account both the volatility and the return of the investment. Investors would prefer higher return but less volatility, and the coefficient of variation provides a measure that takes into account both aspects of investors' preferences.
C
The standard deviation measure fails to take into account both the volatility and the riskfree rate. Investors would prefer higher return but less volatility, and the coefficient of variation provides a measure that takes into account both aspects of investors' preferences.
D
The standard deviation measure fails to take into account both the volatility and the return of the investment. Investors would prefer lower return but higher volatility, and the coefficient of variation provides a measure that takes into account both aspects of investors' preferences.
Part
cThe coefficient of variation for project A is
enter your response here.Round to three decimal places.
Part
The coefficient of variation for project B is
enter your response here.Round to three decimal places.
Part
The coefficient of variation for project C is
enter your response here.Round to three decimal places.
Part
The coefficient of variation for project D is
enter your response here.Round to three decimal places.
Part
Which project will Greengage's owners choose, judging on the basis of coefficient of variation?Select the best answer below.
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