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You have been provided the following data about 4 shares (this data was gathered from a sample over the period 2017-2021). Security Expected Return Standard

You have been provided the following data about 4 shares (this data was gathered from a sample over the period 2017-2021).

Security

Expected Return

Standard Deviation

Coefficient of Variation

A

13.0%

5.28%

0.41

B

9.80%

1.80%

0.18

C

6.20%

18.75%

3.02

D

1.30%

12.38%

9.52

  1. Identify which security you would suggest investing funds in if you had to select only one? You need to justify your answer, explaining how you derived your decision. [2 marks]

ii. Provide a definition of the coefficient of variation and explain its use in this given context [2 marks]

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