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A. The coefficient of variation is a better measure of stand-alone risk than standard deviation because it is a standardized relative measure of risk per
A. The coefficient of variation is a better measure of stand-alone risk than standard deviation because it is a standardized relative measure of risk per return. The coefficient of variation shows the risk per unit of return, so it provides a more meaningful risk measure when the when comparing alternatives. You are given the following probability distribution for DOUGMAK Enterprises: i. What is the stock's expected return? Round your answer to 2 decimal places. Do not round intermediate calculations. \% (2 Marks) ii. What is the stock's standard deviation? Do not round intermediate calculations. (2 Marks) iii. What is the stock's coefficient of variation? Do not round intermediate calculations. (2 Marks)
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