Consider the following equally likely project outcomes: - 4104

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Consider the following equally likely project outcomes: Profit XY Pessimistic prediction$0$500 Expected outcome$ 500$500 Optimistic prediction$1000 $500 

a. Project Y has less uncertainty than Project X. 

b. Project X has more variability than Project Y.

c. a and b. 

d. Since Projects X and Y have the same expected outcomes of $500, investors will view them as identical in value. 

 
Solution Description

Consider the following equally likely project outcomes: Profit XY Pessimistic prediction$