A firm is considering two projects,A and B,with the following probability distributions for profit. Given the above,a decision maker using the coefficient of variation rule would
A)choose project A.
B)choose project A only if risk averse.
C)choose project B.
D)choose project B only if risk loving.
E)not be able to make a decision using that rule.

Question

A firm is considering two projects,A and B,with the following probability distributions for profit.  Given the above,a decision maker using the coefficient of variation rule would
A)choose project A. 
B)choose project A only if risk averse. 
C)choose project B. 
D)choose project B only if risk loving. 
E)not be able to make a decision using that rule.

Quizplus · Accepted Answer

The Answer of A firm is considering two projects,A and B,with the following probability distributions for profit.  Given the above,a decision maker using the coefficient of variation rule would
A)choose project A. 
B)choose project A only if risk averse. 
C)choose project B. 
D)choose project B only if risk loving. 
E)not be able to make a decision using that rule.

A Firm Is Considering Two Projects,A and B,with the Following