Reward risk ratio for project a and project byour company

Assignment Help Project Management

Reference no: EM13363317

Reward Risk Ratio for Project A and Project B

Your company is considering two mutually exclusive projects A and B. The expected return and standard deviation of project is A 20% and 15%, respectively. The expected return and standard deviation of project B is 25% and 20%, respectively. The risk-free rate is 8%.

a) What is the reward to risk ratio for project A?

b) What is the reward to risk ratio for project B?

c) Which project do you prefer and why?

Reference no: EM13363317

Questions Cloud

Important information about checklist versus the weighted : important information about checklist versus the weighted factor methodneed assistance with the following short essay

Project managementexplain how can a project manager : project managementexplain how can a project manager influence customer expectations and perceptions?what is the

Net salvage value of a 3 year tax life asseta new asset : net salvage value of a 3 year tax life asseta new asset with a 3-year tax life is to be used in a 5-year project. the

Construction project planning and controlshow the benefits : construction project planning and controlshow the benefits to the project lifecycle by commencing the planning proccess

Reward risk ratio for project a and project byour company : reward risk ratio for project a and project byour company is considering two mutually exclusive projects a and b. the

Cost of capital based on another firms projectwhen a : cost of capital based on another firms projectwhen a manager develops a cost of capital for a specific project based on

Cash flow at time zeroall of the following are related to a : cash flow at time zeroall of the following are related to a proposed project. which of these should be included in the

Is analyzing a proposed project what is best case operating : is analyzing a proposed project what is best case operating cash flow?thomas mfg. is analyzing a proposed project. the

Operating cash flow for the projectjefferson and sons is : operating cash flow for the projectjefferson and sons is evaluating a project that will increase annual sales by 138000

User Account

All Pages