Question
Five investment alternatives have the following returns and standard deviations of returns. Alternatives Returns: Expected Value Standard Deviation A $ 1,330 $ 1,250 B 1,700
Five investment alternatives have the following returns and standard deviations of returns.
| Alternatives | Returns: Expected Value | Standard Deviation | ||||
| A | $ | 1,330 | $ | 1,250 | ||
| B | 1,700 | 820 | ||||
| C | 9,400 | 8,600 | ||||
| D | 1,630 | 1,150 | ||||
| E | 67,900 | 22,100 | ||||
Calculate the coefficient of variation and rank the five alternatives from lowest risk to the highest risk by using the coefficient of variation. (Round your answers to 3 decimal places.)
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Financial Econometrics
Authors: Peijie Wang
1st Edition
0415426693, 978-0415426695
