=+LG 2 E83 The expected annual returns are 15% for investment 1 and 12% for investment 2.
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=+LG 2 E8–3 The expected annual returns are 15% for investment 1 and 12% for investment 2.
The standard deviation of the first investment’s return is 10%; the second investment’s return has a standard deviation of 5%. Which investment is less risky based solely on its standard deviation? Which investment is less risky based on its coefficient of variation?
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Principles Of Managerial Finance
ISBN: 9781292261515
15th Global Edition
Authors: Chad J. Zutter, Scott Smart
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