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Possible outcomes for three investment alternatives and their probabilities of occurrence are given below. Alternative 1 Alternative 2 Alternative 3 Outcomes Probability Outcomes Probability Outcomes
Possible outcomes for three investment alternatives and their probabilities of occurrence are given below. |
Alternative 1 | Alternative 2 | Alternative 3 | ||||||||||||||||||
| | | ||||||||||||||||||
Outcomes | Probability | Outcomes | Probability | Outcomes | Probability | |||||||||||||||
Failure | 50 | .2 | 90 | .3 | 80 | .4 | ||||||||||||||
Acceptable | 80 | .4 | 160 | .5 | 200 | .5 | ||||||||||||||
Successful | 120 | .4 | 200 | .2 | 400 | .1 | ||||||||||||||
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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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