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An Investment group in Austin corporation has the following probability distribution of returns. Probability (%) Return ( %) 15 1 35 13 25 -5 25

An Investment group in Austin corporation has the following probability distribution of returns.

Probability (%) Return (%)

15 1

35 13

25 -5

25 27

a. What is the standard deviation of an investment in Austin corporation?

b. What is the coefficient of variation of an investment in Austin Corporation?

c. In terms of coefficient of variation, would you prefer the above investment in Austin Corporation or an investment in Lily Corporation which has a coefficient of variation of 1.3?

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