[See Steps] Two investments have the following expected returns (net present values) and standard deviation of returns: Project Net present value Standard
Question: Two investments have the following expected returns (net present values) and standard deviation of returns:
| Project | Net present value | Standard deviation |
| A | $50,000 | $40,000 |
| B | $250,000 | $125,000 |
Which one is riskier? Why?
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