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What is the total risk of company

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Your company consists of two different projects. You expect things to be either good next year with probability 1 2 or bad with the same probability 1 2 . If things will be good, the first project will pay $5M and the second project will pay $20M one year from now. If things will be bad, the first project will pay $15M and the second project will pay $10M one year from now.

(a) Which project is riskier?

(b) What is the total risk of your company?

Reference no: EM132485058

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