MCQOPTIONS
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MCQOPTIONS
| 1. |
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. |
| B. | Project B dominates project A. |
| 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. |
| Answer» B. Project B dominates project A. | |