Standard deviation for every project, Financial Management

AOT limited is considering two mutually exclusive projects - cable and satellite.  The possible NPVs for every project and their associated probabilities are as follows:

Cable:                                                  Satellite:

NPV ($'000)   Probability                   NPV ($'000)   Probability

10                    10%                             15                    60%

20                    50%                             20                    20%                

25                    40%                             40                    20%

 

Determine the standard deviation for every project.  Which project has the higher level of risk?

 

Posted Date: 3/22/2013 1:36:30 AM | Location : United States







Related Discussions:- Standard deviation for every project, Assignment Help, Ask Question on Standard deviation for every project, Get Answer, Expert's Help, Standard deviation for every project Discussions

Write discussion on Standard deviation for every project
Your posts are moderated
Related Questions
There are several methods available to forecast yield volatility. But before that, let us look into the calculation of forecasted standard deviation. Assume th

Explain the structure of financial systems In direct finance borrower-spenders borrow funds straight from lenders in the financial markets by selling them securities. In indire

how does "x" company hegde itself? the company name will be shared later.

Traded investments The term traded investment refers to the buy of an investment asset which is traded in the financial markets. Instance includes government and ordinary share

Scenario:  ABC Company sells widgets in three varieties (blue, red, and yellow) but has lost money for the past three years.  Competitive intelligence shows the Company's products

Types of Treasury Bills Treasury bills are issued at various maturities, generally up to one year. Thus, they are useful in managing short-term liquidity. At present, the GOI (

What are a bank's primary reserves ? When the Fed sets reserve requirements, what is its primary goal? Vault deposits and cash in the bank's account at the Fed are used to pe

What its the net income? Total current assets, plant and equipment, net plant and equipment, our net account receivable?

Q. Example on hedge fund? Hedge Fund enters agreement to sell HK$ in six month's. At expiration the Hedge Fund requires to buy spot HKD and deliver these against the short futu

How can we measure the Present Value When we solve for present value, rather than compounding the cash flows to the future, we discount future cash flows to present value to ma