Question

A project has an expected NPV of ₹5 crore, a standard deviation of ₹2 crore, and a coefficient of variation of 0.4. If the company has another project with a lower expected NPV but a coefficient of variation of 0.2, which project is riskier and why?

A First project is riskier due to lower NPV
B Second project is riskier due to lower CV
C First project is riskier due to higher CV
D Risk cannot be compared without beta value
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