A firm is choosing a new product. The following table

Chapter , Problem 10-59

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A firm is choosing a new product. The following table summarizes six new potential products.Considering expected return and risk, which prod-ucts are good candidates? The firm believes it canearn 4% on a risk-free investment in governmentsecurities (labeled as ProductF).Product IRR StandardDeviation1 10.4% 3.2%29.8 2.336.0 1.64 12.1 3.65 12.2 8.06 13.8 6.5F4.0 0.0

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