### The first problem is asking to compare the risk between two investment projects.Why one investment is riskier than the other? The second problem is about the calculation of the mean and standard deviation of the price normal distribution and the probability of receiving a price less than a certain amount.

1. Two investments have the following expected returns (net present values) and standard deviation of returns: Project Expected Returns Standard Deviation A $50,000 $40,000 B $250,000