Two projects have the following NPVs and standard deviations
Which of the two projects is more risky?
Project A Project B
NPV 200 300
Standard deviation 75 100.© BrainMass Inc. brainmass.com March 4, 2021, 8:04 pm ad1c9bdddf
If we consider the absolute measure of risk, then standard deviation is of the project B is higher so it has higher risk. However, since the two ...
The solution determines which of the two projects is more risky.