Karamo$$s Shoe Stores Incorporated is considering opening an additional suburban outlet. An aftertax expected cash flow of $$120$ per week is anticipated from two stores that are being evaluated. Both stores have positive net present values.

Site A Site B

Probability Cash Flows Probability Cash Flows

$0\mathrm{.}2$ $ $700\mathrm{.}1$ $ $40$

$0\mathrm{.}21200\mathrm{.}270$

$0\mathrm{.}41300\mathrm{.}2120$

$0\mathrm{.}21500\mathrm{.}4140$

$0\mathrm{.}1220$

Compute the coefficient of variation for each site.

Note: Do not round intermediate calculations. Round your answers to $3$ decimal places.

Which store site would you select based on the distribution of these cash flows? Use the coefficient of variation as your measure of risk.

multiple choice

Site A

Site B