Question
Five investment alternatives have the following returns and standard deviations of returns. Alternatives Returns: Expected Value Standard Deviation A $ 1,650 $ 520 B 1,750
Five investment alternatives have the following returns and standard deviations of returns.
| Alternatives | Returns: Expected Value | Standard Deviation | ||||
| A | $ | 1,650 | $ | 520 | ||
| B | 1,750 | 1,010 | ||||
| C | 13,300 | 1,300 | ||||
| D | 1,350 | 790 | ||||
| E | 64,900 | 23,000 | ||||
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.)
| Alternatives | Coefficient of Variation | Rank |
| A | ||
| B | ||
| C | ||
| D | ||
| E |
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Foundations Of Financial Markets And Institutions
Authors: Frank J Fabozzi, Franco G Modigliani, Frank J Jones
4th Edition
0136135315, 978-0136135319
