Expected Value, Risk Measurement and Relative Risk

Hello,

I am looking to compare the work and formulas for the calculation of Expected Value, Absolute Risk Measurement, and Relative Risk for both projects. I have the answers, however, my textbook is horrible in explaining the work.

Project A
Probability Cash Flow
0.5 $200,000
0.5 $300,000

Project B
Probability Cash Flow
0.05 $0
0.80 $200,000
0.15 $400,000

I am looking to compare the work and formulas for the calculation of Expected Value, Absolute Risk Measurement, and Relative Risk for both projects.
Project A Project B
Probability Cash Flow Probability Cash Flow
0.50 $200,000 0.05 $0
0.50 $ 300,000 0.80 $ 200,000
0.15 $ 400,000

Solution:- Calculation of Expected value of each project
If X is a discrete random variable with probability mass function p(x), then the expected value becomes

Project A
Probability Cash flow Expected ...

Solution Summary

The solution related to expected value and other calculations of project A and B is posed.

... on the following information, calculate the expected return and ... and the impact of diversification on measuring risk. ... theory, the concept of time value of money ...

... of variation, the larger the relative risk of the ... The most common procedure to assess and measure risk of an ... deviation from the mean or expected value or return ...

... the investments on which those investors expect to earn a ... such companies have the same expected earnings and ... periods, you must convert each value using Log ...

... a. Show (mathematically) that her expected utility is higher when ... answer by calculating the measure of relative risk aversion ... per unit is added to the price of x ...

... return anticipated for a given amount of risk ( Mayo, 2003 ... asp The above formula indicates that the value of alpha ... return for the market or the expected rate of ...

... Are the expected returns "reasonable"; that is, is it reasonable ... A Beta Value of 0.6 means that, when the ... asset portfolio and (2) the actual risk premium on ...

... stock to be determined Plugging in the values rA= 12 ... What is the expect standard deviation of the return of ...Expected return Stock 7.65 % (calculated above) 1 12 ...

... the simplest way to find out the expected/required rate ... So the higher the value of Sharpe ratio the ... bit of a blunt instrument to measure risk-adjusted returns. ...

... izations to see why Value Line analysts expect (implicitly at ...Expected market risk premium is measured as the arithmetic average of value-weighted market ...

... Step 3: Multiply each log price relative against each ... coefficient of variation an appropriate measure of risk? ... deviation to an investment's expected return, as ...