Question
please show formulas P87 Coefficient of variation Metal Manufacturing has isolated four alternatives for meeting its need for increased production capacity. The following table summarizes
please show formulas
P87 Coefficient of variationMetal Manufacturing has isolated four alternatives for meeting its need for increased production capacity. The following table summarizes data gathered relative to each of these alternatives.
Calculate the coefficient of variation for each alternative.
If the firm wishes to minimize risk, which alternative do you recommend? Why?
| Alternative | Expected return | Standard deviation of return | ||||||
| A | 20% | 7.0% | ||||||
| B | 22 | 9.5 | ||||||
| C | 19 | 6.0 | ||||||
| D | 16 | 5.5 | ||||||
| Problem P8-7: | ||||||||
| Part a: | ||||||||
| Investment | Expected Return | Standard Deviation | Coefficient of Variation | |||||
| A | 20% | 7.00% | ||||||
| B | 22% | 9.50% | ||||||
| C | 19% | 6.00% | ||||||
| D | 16% | 5.50% | ||||||
| Part b: | ||||||||
| If the firm wishes to minimize risk, which alternative do you recommend and why? | ||||||||
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The Exchange Traded Funds Manual
Authors: Gary L. Gastineau
2nd Edition
0470482338, 978-0470482339
