Question: Assume you have 2 best projects in which you could invest, but due to your resource limitations you can only invest in one of them. Project 1st has an expected return of 16% and a volatility of 20%. Project 2nd has an expected return of 25% and a volatility of 30 percent. If the riskless rate is 4 percent, which of these two projects would you choose?
1st: Project 1
2nd: Project 2