2. There are two projects, X and Y. the following probabılıty distribution for the projects are given below PROJECT X PROJECT Y Return Prob. Return Prob. Pessimistic 8% 0.25 7% 0.35 Most Likely 16 0.50 13 0.45 Optimistic 21 0.25 22 0.20 Which proiect should vou take based on Risk and Return?why?
2. There are two projects, X and Y. the following probabılıty distribution for the projects are given below PROJECT X PROJECT Y Return Prob. Return Prob. Pessimistic 8% 0.25 7% 0.35 Most Likely 16 0.50 13 0.45 Optimistic 21 0.25 22 0.20 Which proiect should vou take based on Risk and Return?why?
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Question
![2. There are two projects, X and Y. the following probability distribution for the projects are
given below
PROJECT X
PROJECT Y
Return
Prob.
Return
Prob.
Pessimistic
8%
0.25
7%
0.35
Most Likely
16
0.50
13
0.45
Optimistic
21
0.25
22
0.20
Which project should you take based on Risk and Return?why?](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fdcc96efa-7dbb-43de-bfe2-191c50433da5%2F3cf3710d-72be-479f-bb1b-3d593024908b%2F2kn7ein_processed.png&w=3840&q=75)
Transcribed Image Text:2. There are two projects, X and Y. the following probability distribution for the projects are
given below
PROJECT X
PROJECT Y
Return
Prob.
Return
Prob.
Pessimistic
8%
0.25
7%
0.35
Most Likely
16
0.50
13
0.45
Optimistic
21
0.25
22
0.20
Which project should you take based on Risk and Return?why?
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