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Intro Calculate the coefficients of variation for the following stocks: Stock Expected return Standard deviation of return 1 0.065 0.25 2 0.04 0.17 3 0.1

Intro

Calculate the coefficients of variation for the following stocks:

Stock Expected return Standard deviation of return
1 0.065 0.25
2 0.04 0.17
3 0.1 0.24

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Part 1

What is the coefficient of variation for stock 1?

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Part 2

What is the coefficient of variation for stock 2?

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Part 3

What is the coefficient of variation for stock 3?

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Part 4

If you want to get the best risk-to-reward trade-off, which stock should you buy?

Stock 2

Stock 3

Stock 1

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