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Author Question: The demand for products that provide benefit externalities is generally ________ the demand for ... (Read 126 times)

CORALGRILL2014

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on: Jul 1, 2018
The demand for products that provide benefit externalities is generally ________ the demand for products that do not.
 
  A) greater than
  B) less than
  C) the same as
  D) greater or less (depending on the market) than

Question 2

Two projects have the following NPVs and standard deviations:
 
  Project A Project B
   NPV 200 300
   Standard deviation 75 100
 
  Which of the two projects is more risky?


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harveenkau8139

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Reply #1 on: Jul 1, 2018
Answer to Question 1

B

Answer to Question 2

Since the two projects have different NPVs and different standard deviations, relative risk can be measured by the coefficient of variation. Project A has a CV of.375, project B .333. Thus, the relative risk of project B is less.


CORALGRILL2014

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Reply #2 on: Jul 1, 2018
Correct answers!


harveenkau8139

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Reply #3 on: Jul 1, 2018
Great! Please up vote :D


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