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Possible outcomes for three investment alternatives and their probabilities of occurrence are given next. Alternative 1 Alternative 2 Alternative 3 Outcomes Probability Outcomes Probability Outcomes
Possible outcomes for three investment alternatives and their probabilities of occurrence are given next.
Alternative 1 | Alternative 2 | Alternative 3 | ||||||||||||||||||
Outcomes | Probability | Outcomes | Probability | Outcomes | Probability | |||||||||||||||
Failure | 60 | 0.40 | 80 | 0.20 | 70 | 0.30 | ||||||||||||||
Acceptable | 85 | 0.40 | 150 | 0.40 | 275 | 0.60 | ||||||||||||||
Successful | 140 | 0.20 | 220 | 0.40 | 410 | 0.10 | ||||||||||||||
Using the coefficient of variation, rank the three alternatives in terms of risk from lowest to highest. (Do not round intermediate calculations. Round your answers to 3 decimal places.)
Coefficient of Variation | Rank | |
Alternative 1 | ||
Alternative 2 | ||
Alternative 3 |
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