Question: Simonsig Limited is attempting to make a choice between two projects based on the measure of the riskiness. The projects have the following expected cash
Simonsig Limited is attempting to make a choice between two projects based on the measure of the riskiness. The projects have the following expected cash flows in the next 5 years: Year Project A Project B 1 R900 000 R900 000 2 R800 000 R500 000 3 R400 000 R400 000 4 R300 000 R300 000 5 R200 000 R100 000 Required: 3.1 Establish, using the standard deviation of cash flows as a measure of risk, which project is riskier.
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