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4) You manage a risky portfolio with an expected return of 13% and a standard deviation of 29%. a) What is the coefficient of variation

4) You manage a risky portfolio with an expected return of 13% and a standard deviation of 29%.

a) What is the coefficient of variation for the portfolio? Interpret this number and explain how you might use it?

b) If the coefficient of variations for Stock A and Stock B are 1.86 and 2.18 respectively, which stock would be the better stand-alone investment? Explain your answer.

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