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A company is considering among the two projects: project 1 and project 2. The predicted cash flows and their probabilities of the two projects are shown below.

1636_variance and standard deviation.jpg

Q1. Compute the expected value (or revenue) from each project.

Q2. Compute the variance and standard deviation of the expected value from each and every project.

Q3. Compute the coefficient of variation of each project and find out which project must the company select.

Econometrics, Economics

  • Category:- Econometrics
  • Reference No.:- M99986

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