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    Project's Return for Procter & Gamble

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    (Expected return and risk) Procter & Gamble is considering three possible capital investment
    projects. The projected returns depend on the future state of the economy as given
    here.
    a. Calculate each project's expected return, variance, and standard deviation.
    b. Rank the projects on the basis of (1) expected return and (2) risk. Which project would
    you choose?
    PROJECTED RETURN
    State of the Probability of
    Economy Occurrence 1 2 3
    Recession 0.1 9% 3% 15%
    Stable 0.7 13 10 11
    Boom 0.2 17 22 5

    © BrainMass Inc. brainmass.com June 3, 2020, 10:51 pm ad1c9bdddf
    https://brainmass.com/statistics/probability/number-b6-253028

    Solution Summary

    This solution shows step-by-step calculations to determine the project's expected return, variance, and standard deviation. In addition, it ranks the projects on the basis of expected return and risk.

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