Evaluate the riskiness of an investment , Finance Basics

Compare the three investments below in terms of their riskiness. What is the best way to evaluate the riskiness of an investment given the information you have on them?

Project

Expected Return

Standard Deviation

A

$100,000

$25,000

B

$200,000

$40,000

C

$50,000

$20,000

 

Posted Date: 4/1/2013 5:22:17 AM | Location : United States







Related Discussions:- Evaluate the riskiness of an investment , Assignment Help, Ask Question on Evaluate the riskiness of an investment , Get Answer, Expert's Help, Evaluate the riskiness of an investment Discussions

Write discussion on Evaluate the riskiness of an investment
Your posts are moderated
Related Questions
Company XYZ stock is considering the two new projects, Project A and Project B. The two projects have similar risk characteristics as the existing business. The managers forecast t

The Morris Corporation has $ 600,000 of debt outstanding, and it pays an interest rate of 8% annually. Morris’s annual sales are $# million, its average tax rate is 40% and its net

Discuss the necessity of risk adjusted hurdle rates for companies with diverse lines of business. Every company invests in new projects based on the expectation of earnings

The director of capital budgeting for a firm has identified two mutually exclusive projects, A and B, with the following expected net cash flows: Expected Net Cash Flows Year

FASB Assignment

Example of Accounting Rate of Return Method                                    Shs. Project X cost              500,000 Scrap value                 100,000 Stream of

Mortgages - Financial Institutions An arrangement of the property being purchased provides the security for funding. Other assets may be employed like security for funding o

(i) Find out operating leverage from the following data: Sales                             Rs.50000 Variable Cost               60% Fixed Cost                   Rs.12000

Contribution Margin The Average of the industry Contribution Margin (CM) was 15.40% for 2004, 14.39% for 2005, and 13.18% for 2006. The chart showed that Contribution Mar

DEFINE THE TERM OPTION IN DETAIL?