Problem:
Nosari's Noodle Factory has two projects: Gina's Gemelli and Fran's Farfalle.
Gina's has an expected NPV of $1,000. The standard deviation of the NPV is $400.
Fran's Farfalle has a expected NPV of $1800. The standard deviation of the NPV is $600.
Which project is relatively more risky?
(All amounts are in millions of dollars)
A) Gina's
B) Fran's
C) The projects are equally risky on the basis of risk per unit of return