Which projects are good candidates

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Reference no: EM132050060

Vulture Capital needs to choose among possible investment opportunities to select one new research and development project. The following table summarizes six possibilities. Make and show a plot of Expected IRR (vertical axis) vs. Std. Dev. IRR (horizontal axis) and connect the points along the "efficient frontier". Those connected points are the projects to be chosen as good candidates. Which projects are good candidates?

Project	Expected Value of IRR	Standard Deviation of IRR
A	14.8%	5.9%
B	11.3%	3.5%
C	9.4%	5.3%
D	8.1%	6.4%
E	13.6%	7.0%
F	16.5%	11.3%
G	4.0%	0.0%

Reference no: EM132050060

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