Typical of the average corporation and is risk-adverse

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Reference no: EM13835216

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

a. Which of the following four projects should Mountain Ski Corp. choose? Compute the coefficients of variation to help you make your decision.

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

Year Returns of Expected Value Standard Deviation

A 527,000 834,000

B 682,000 306,000

C 74,000 135,000

D 140,000 89,000

Reference no: EM13835216

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