Which project has the lowest standard deviation

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Greengage, Inc., a successful? nursery, is considering several expansion projects. All of the alternatives promise to produce an acceptable return. Data on four possible projects appear in the following? table

Project                          Expected Return                       Range               Standard Deviation

A                                              11.9%                           4.2%                             3.1%

B                                              13.1%                           6.3%                             2.7%

C                                              13.2%                           4.7%                             3.9%

D                                              11.8%                           3.9%                             3.5%

1) Which project is least? risky, judging on the basis of? range?

2) Which project has the lowest standard deviation?

Explain why standard deviation may not be an entirely appropriate measure of risk for purposes of this comparison.

3) Calculate the coefficient of variation for each project. Which project do you think? Greengage's owners should? choose?

Reference no: EM131192509

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