r
I Problems
10-34 A firm is choosing a new product. The following
table summaIjzes six new potential products. Con-
sidering expected return and risk, which products are
good candidates? The firm believes it can earn 4%
on a risk-free investment in government securities
(labeled as ProductF).Product
1 2 3 4 5 6 FIRR
10.4%
9.8
6.0
12.1
12.2
13.8
4.0Standard Deviation
3.2%
2.3
1.6
3.6
8.0
6.5
0.0335II.
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