Which project is least risky

Reference no: EM13256844

Greengage, Inc., a successful nursery, is considering several expansion projects. All of the alternatives promise to produce an acceptable return. Data on four possible projects follow:

Project Expected Return Range Standard deviation

A 12.0% 4.0% 2.9%

B 12.5 5.0 3.2

C 13.0 6.0 3.5

D 12.8 4.5 3.0

A. Which project is least risky, judging on the basis of range?

B. Which project has the lowest standard deviation? Explain why standard deviation may not be an entirely appropriate measure of risk for pusrposes of this comparison.

C. Calculate the coefficient of variation for each project. Which project do you think Greengage's owners should choose? Explain why?

Reference no: EM13256844

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