# Risk

Not what you're looking for? Search our solutions OR ask your own Custom question.

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.

Â© BrainMass Inc. brainmass.com March 4, 2021, 8:04 pm ad1c9bdddfhttps://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.

$2.49