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Question: Budfast Inc, is evaluating three investment opporunities. There are three products that management wants to investigate. these products have all the life of 14 years and the expected return and risk are given below. Standard devitation is a measure of risk for Budfast Inc.

Budfast inc. requires a return of at least 18% on its projects, which have a standard deviation below 10%.

	Expected return	Standard deviation
product p	31%	12%
product q	14%	6%
product r	23%	13%

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