The three major types of inventory on the Balance Sheet of a Manufacturing Company (Think Operating Cycle Flow Chart):?

Customers, Vendors, and Cash

Cash Flow from Operations, Cash Flow from Investing, and Cash Flow from Financing

Raw Materials, Work-in-Process, and Finished Goods

Receivables, Payables, and Cash

Purchase Orders, Finished Goods, and Raw Materials

There are three possible economic outcomes: Recession: 50%, Average: 20%, and Boom: 30%. The returns generated for USR (US Rubber) in each economic scenario: Recession: 5%, Average: 10%, and Boom: 20%. What is the Expected Rate of Return?

(0.5)(.05) + (0.2)(.1) + (0.3)(0.2) = 10.5%

Subtract expected return of T-Bills from expected return of High Tech, 9.9% - 3% = 6.9%

Square root of the variance which is the standard deviation, or 18.8%

Square the variance and divide by the expected return to derive coefficient of variation.

Standard deviation calculations are the following: _{High Tech} = 20%, _COLL = 11.2%, _Market = 15.2%, _USR = 18.8%, and _T-Bills = 0%. Which one of the following has the widest dispersion around the expected return and which one is the most narrow?

T-Bills / High-Tech

High-Tech / T-Bills

USR / Collections

Market / Market

High-Tech / USR