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Calculate the coefficients of variation for the following stocks: Stock Expected return Standard deviation of return 1 0.065 0.29 2 0.04 0.17 3 0.15 0.24
Calculate the coefficients of variation for the following stocks:
Stock | Expected return | Standard deviation of return |
1 | 0.065 | 0.29 |
2 | 0.04 | 0.17 |
3 | 0.15 | 0.24 |
1. What is the coefficient of variation for stock 1?
2.What is the coefficient of variation for stock 2?
3. What is the coefficient of variation for stock 3?
4. If you want to get the best risk-to-reward trade-off, which stock should you buy?
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