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problem: Assume you have 2 best projects in which you could invest, but due to your resource limitations you can only invest in one of them. Project 1st has an expected return of 16% and a volatility of 20%. Project 2nd has an expected return of 25% and a volatility of 30 percent. If the riskless rate is 4 percent, which of these two projects would you choose?

1st: Project 1

 

2nd: Project 2

Basic Finance, Finance

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  • Reference No.:- M918682

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