+1 vote
in Class 12 by kratos

You are considering two mutually exclusive investment proposals, project A and project B. B'* expected value of net present value is $1,000 less than that for A and A has less dispersion. On the basis of risk and return, you would say that

a) Project A dominates project B.

b) Project B dominates project A.

c) Project A is more risky and should offer greater expected value.

d) Each project is high on one variable, so the two are basically equal.

1 Answer

+2 votes
by kratos
 
Best answer

a) Project A dominates project B.

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