a)  Which project is least risky, judging on the basis of range?

b) Which project has the lowest standard deviation? Explain why standard deviation may not be an entirely appropriate measure of risk for purposes of this comparison.

c)  Calculate the coefficient of variation for each project. Which project do you think Greengage's owners should choose?

Project Expected return range standard deviation

A 11.9% 6.3% 3.1%

B 13.2% 5.2% 3.9%

C 13.4% 4.5% 3.5%

D 12.9% 6.2% 2.6%

Answer rating: 100% (QA)

1 Based on range Project C is lowest risky because range for project C is lowest among all the proje... View the full answer