Raj has two projects X and Y in hand. The same amount of risk is involved in both the projects. If the rate of return of project X and Y is 25% and 20% respectively, then under normal circumstance, which of the two projects is likely to be selected?

Project X

The correct answer is option 1- Project X.

Project X is selected by Raj.

In this situation Raj would select Project X, because it would get more return from this project as the rate of return is high as compared to project Y.