# Risk

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.

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#### Solution Preview

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 ...

#### Solution Summary

The solution determines which of the two projects is more risky.

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