In calculating the risk associated with two potential


In calculating the risk associated with two potential projects (A & B), which of the following statistical calculations indicates that the projects are equally risky?

  1. The standard deviation of  A is 100, and the coefficient of variation of A is 80.912
  2. The standard deviation of B is 1,000, and the coefficient of variation of B is 809.12
  3. The variance of A's possible outcomes is 258.10, and the standard deviation of A is 100
  4. The variance of B's possible outcomes is 2,581, and the standard deviation of B is 1,000

  • iii and iv
  • ii and iii
  • i and ii
  • i and iv
  • None of the above

The value for "a" in the regression equation Y = a + b(X) + e is shown in Excel as the slope

  1. the forecasted variable
  2. the intercept
  3. the independent predictor variable
  4. none of the above

 

 

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Finance Basics: In calculating the risk associated with two potential
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