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    Risk

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    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 October 9, 2019, 8:11 pm ad1c9bdddf
    https://brainmass.com/economics/risk-analysis/npv-standard-deviation-more-risky-project-142310

    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.

    $2.19