Compute the coefficients of variation

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Question - Mountain Ski Corp. was set up to take large risks and is willing to take the greatest risk possible. Lakeway Train Co. is more typical of the average corporation and is risk-averse.

Projects

Returns: Expected Value

Standard Deviation

A

$310,000

$138,000

B

719,000

428,000

C

89,000

110,000

D

135,000

215,000

Required -

a-1. Compute the coefficients of variation.

a-2. Which of the following four projects should Mountain Ski Corp. choose?

b. Which one of the four projects should Lakeway Train Co. choose based on the same criteria of using the coefficient of variation?

Reference no: EM132946689

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