Business, 08.04.2020 02:29 josephcarriveau

Your company consists of two different projects. You expect things to be either good next year with probability 1 2 or bad with the same probability 1 2 . If things will be good, the first project will pay $5M and the second project will pay $20M one year from now. If things will be bad, the first project will pay $15M and the second project will pay $10M one year from now. (a) Which project is riskier?(b) What is the total risk of your company?

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