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Rakhi Vasavada
Rakhi Vasavada, Financial and Legal Consultant
Category: Finance
Satisfied Customers: 2605
Experience:  Graduated in law with Emphasis on Finance and have have been working in financial sector for over 12 Years
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1. (5 points) Your company consists of two different

Customer Question

1. (5 points) Your company consists of two different projects. You expect things to be either good next year with probability 1 or bad with the same probability 1 . If things will be good,
the first project will pay $25M and the second project will pay $10M one year from now. If things will be bad, the first project will pay $15M and the second project will pay $20M one year from now.
(a) (2.5 points) Which project is riskier?
(b) (2.5 points) What is the total risk of your company?
Submitted: 1 year ago.
Category: Finance
Expert:  PDtax replied 1 year ago.

Hi from just answer. I'm PDtax, and will assist.