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Five investment alternatives have the following returns and standard deviations of returns. Alternatives Returns: Expected Value Standard Deviation A $ 1,460 $ 780 B 1,370
Five investment alternatives have the following returns and standard deviations of returns.
Alternatives | Returns: Expected Value | Standard Deviation | ||||
A | $ | 1,460 | $ | 780 | ||
B | 1,370 | 1,490 | ||||
C | 10,300 | 9,100 | ||||
D | 1,180 | 1,060 | ||||
E | 67,600 | 21,500 | ||||
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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Tim Trepid is highly risk-averse while Mike Macho actually enjoys taking a risk.
Investments | Returns: Expected Value | Standard Deviation | ||||
Buy stocks | $ | 9,590 | $ | 6,090 | ||
Buy bonds | 7,890 | 2,230 | ||||
Buy commodity futures | 23,900 | 22,100 | ||||
Buy options | 13,100 | 18,800 | ||||
a-1. Compute the coefficients of variation. (Round your answers to 3 decimal places.) stocks
bonds
commodity
options
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