Calculate the expected return to each project

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Reference no: EM131244841

Consider the following information:

Project Boom (50%) Recession (50%)

A $40 -$10

B -$10 $40

C $50 $50

D $40 -$40

A. Calculate the Expected Return to each project;

B. Rank these projects in terms of attractiveness from a risk-averse perspective;

C, Assess how your answers change if the likelihood of these outcomes changes such that there is an 70% chance of an economic boom and 30% chance of a recession.

Reference no: EM131244841

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