Problem 21

Intro

Calculate the coefficients of variation for the following stocks:

Stock	Expected return	The standard deviation of return
1	0.065	0.29
2	0.04	0.17
3	0.13	0.24

Attempt 1/10 for 10 pts.

Part 1

What is the coefficient of variation for stock 1?

Part 2

What is the coefficient of variation for stock 2?

Part 3

What is the coefficient of variation for stock 3?

Attempt 1/5 for 10 pts.

Part 4

If you want to get the best risk-to-reward trade-off, which stock should you buy?

Stock 2

Stock 1

Stock 3