Post Utme Coal City University 2024 Commerce Question 37

Practice objective / multiple choice question 37 from the 2024 Post Utme Coal City University Commerce examination.

Post Utme Coal City University 2024 Commerce Objective / Multiple Choice
Question 37 POST_UTME_COAL_CITY_UNIVERSITY • 2024 • COMMERCE • objective

A company is considering two different investment projects. Project A has a higher expected return but also a higher level of risk. Project B has a lower expected return but also a lower level of risk. Which of the following is the best way to evaluate the risk of each project?

Answer Options

A. Using the expected return alone.
B. Using the standard deviation of returns alone.
C. Using the coefficient of variation (CV) of returns.
Correct Answer D. Using a combination of expected return and standard deviation of returns.
Correct Answer
D
Correct Option:
Using a combination of expected return and standard deviation of returns.

About This Question

This is Post Utme Coal City University 2024 Commerce Question 37. It is one of the objective questions from the 2024 Post Utme Coal City University Commerce examination.

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