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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 | $ | 40 | 0.20 | $ | 70 | 0.20 | $ | 60 | 0.20 | |||||||||||
Acceptable | 70 | 0.40 | 170 | 0.40 | 205 | 0.60 | ||||||||||||||
Successful | 110 | 0.40 | 245 | 0.40 | 370 | 0.20 | ||||||||||||||
Rank the three alternatives in terms of least risk to most risk. (Do not round intermediate calculations. Round the final answers to 3 decimal places.)
Coefficient of Variation | ||
Alternative 1 | ||
Alternative 2 | ||
Alternative 3 | ||
Alternative | |
Least risky | (Click to select) Alternative 2 Alternative 1 Alternative 3 |
| | (Click to select) Alternative 2 Alternative 1 Alternative 3 |
Most risky | (Click to select) Alternative 2 Alternative 1 Alternative 3 |
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