e 1 2 3 4 5 56 Returns on Project A 70.00% -24.00% 46.00% 46.00% 0.00% 9.00% Returns on Project B 63.00% -21.60% 41.40% 41.40% 0.00% 8.10%

Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
Section: Chapter Questions
Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...
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Question
time
1
2
3
4
5
6
7
8
9
10
Returns
on Project
A
70.00%
-24.00%
46.00%
46.00%
0.00%
9.00%
-83.00%
68.00%
-39.00%
112.00%
Returns
on Project
B
63.00%
-21.60%
41.40%
41.40%
0.00%
8.10%
-74.70%
61.20%
-35.10%
100.80%
The risk of a portfolio composed of 50% in project A and 50% in
project B is greater than the risk of either project A or Project B.
True
False
Transcribed Image Text:time 1 2 3 4 5 6 7 8 9 10 Returns on Project A 70.00% -24.00% 46.00% 46.00% 0.00% 9.00% -83.00% 68.00% -39.00% 112.00% Returns on Project B 63.00% -21.60% 41.40% 41.40% 0.00% 8.10% -74.70% 61.20% -35.10% 100.80% The risk of a portfolio composed of 50% in project A and 50% in project B is greater than the risk of either project A or Project B. True False
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