The CEO of Company SZ wants to invest in a portfolio of two real investment projects, Project A and Project B. Below are information about these projects. The NPV has an expected value of $4000 and standard deviation of $4000. : The NPV has an expected value of $5000 and standard deviation of $5000. The correlation between NPV of Project A and NPV of Project B is 0.4. What is the coefficient of variation of the NPV of this portfolio that consists of Project A and Project B?

The CEO of Company SZ wants to invest in a portfolio of two real investment projects, Project A and Project B. Below are information about these projects. The NPV has an expected value of $4000 and standard deviation of $4000. : The NPV has an expected value of $5000 and standard deviation of $5000. The correlation between NPV of Project A and NPV of Project B is 0.4. What is the coefficient of variation of the NPV of this portfolio that consists of Project A and Project B?

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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