Question
Calculate the project's coefficient of variation. (Hint: Use the expected NPV.) Squareddev. Prob.NPVNPVi-E(NPV)Squared deviationtimesprobability 0.24$6,289.81$5,829$$ 0.24-$2,390.74-$2,852$$ 0.32-$1,233.33-$1,694$$ 0.20-$ 400.00-$861$$ ____________ 1.00$ 461.11Variance $_____________ Standard deviation
Calculate the project's coefficient of variation. (Hint: Use the expected NPV.)
Squareddev.
Prob.NPVNPVi-E(NPV)Squared deviationtimesprobability
0.24$6,289.81$5,829$$
0.24-$2,390.74-$2,852$$
0.32-$1,233.33-$1,694$$
0.20-$ 400.00-$861$$ ____________
1.00$ 461.11Variance $_____________
Standard deviation $_______
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International Financial Management
Authors: Geert Bekaert, Robert J. Hodrick
2nd edition
013299755X, 132162768, 9780132997553, 978-0132162760
