Mountain Ski Corp. was set up to take large risks and is willing to take the greatest risk possible. Lakeway Train Co. is more t
ypical of the average corporation and is risk-averse. Projects Returns:
Expected Value Standard
Deviation
A $ 527,000 $ 834,000
B 682,000 306,000
C 74,000 135,000
D 140,000 89,000
a-1. Compute the coefficients of variation. (Round your answers to 3 decimal places.)
Coefficient of
Variation
Project A
Project B
Project C
Project D
a-2. Which of the following four projects should Mountain Ski Corp. choose?
Project A
Project B
Project C
Project D
b.
Which one of the four projects should Lakeway Train Co. choose based on the same criteria of using the coefficient of variation?
