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Question 96 - CTFA discussion

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You are considering two mutually exclusive investment proposals, project A and project B B's expected value of net present value is $1,000 less than that for A and A has less dispersion. On the basis of risk and return, you would say that

A.
Project A dominates project B
Answers
A.
Project A dominates project B
B.
Project B dominates project A
Answers
B.
Project B dominates project A
C.
Project A is more risky and should offer greater expected value
Answers
C.
Project A is more risky and should offer greater expected value
D.
Each project is high on one variable, so the two are basically equal
Answers
D.
Each project is high on one variable, so the two are basically equal
Suggested answer: A
asked 16/09/2024
Heng Tan
30 questions
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