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CTFA · Question #46
CTFA Question #46: Real Exam Question with Answer & Explanation
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Question
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
Options
- AProject A dominates project B
- BProject B dominates project A
- CProject A is more risky and should offer greater expected value
- DEach project is high on one variable, so the two are basically equal
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