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Homework: Chapt. 8 - Risk & Return Question 8, P8-8 (similar to) Part 1 of a HW Score: O Paints: 0 Standard deviation versus coefficient

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Homework: Chapt. 8 - Risk & Return Question 8, P8-8 (similar to) Part 1 of a HW Score: O Paints: 0 Standard deviation versus coefficient of variation as measures of risk Greengage, Inc., a successful nursery, is considering several expansion projects. All the wtomatives projects appear in the following table: a. Which project is least risky.judging on the basis of range? b. Which project has the lowest standard deviation? Explain why standard deviation may not be an entirely appropriate measure of risk for purposes of this comparison C. Calculate the coefficient of variation sch project. Which project do you think Greengage's owners should choose? a. Which project is least risky, judging on the basis of rango? (Select the best answer below) Data table O A. Project OB. Project D C. Project B OD Project A (Click on the icon here in order to copy the contents of the data table into a spreadsheet.) Project A B c D Expected return 12.8% 11.6% 12.2% 13.3% Range 5.6% 6.3% 4.9% 5.2% Standard deviation 3.7% 3.4% 2,8% 3.5% Print Done Greengage, Inc., a successful nursery, a cornisering several expansion projects. All the alternatives promise to produce an acceptable retum. Data on four possible deviation may not be an entirely appropriate measure of risk for purposes of this comparison ou think Greengage's owners should choose? Data table post answer below) (Click on the icon here in order to copy the contents of the data table below into a spreadsheet) Expected Standard Project return Range deviation A 12.8% 5.6% 3.7% 11.6% 6.3% 3.4% 12.2% 4.9% 28% 13.3% 5.2% 3.5%

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