question archive The retailer has the option to invest in either venture A or venture B
Subject:StatisticsPrice:3.87 Bought8
The retailer has the option to invest in either venture A or venture B. Both ventures require an investment of f40,000. The net expected values and standard deviations for the two ventures are stated in Table 4 below.
Table 4 - Outcomes
Venture A Net EV = $48.0 Standard Deviation = $31.08
Venture B Net EV = f42.2 Standard Deviation = 14.32
Required for Task 6 (Comments for task 6 should not exceed 50 words in total.)
1. Calculate the coefficients of variation for venture A and venture B.
2. Assuming the retailer is risk averse, which project should be chosen?
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