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- Award: 10.00 points
Five investment alternatives have the following returns and standard deviations of returns.
Alternatives
Returns:
Expected Value
Standard
Deviation
A $ 1,280 $ 1,150
B 1,790 1,490
C 12,300 2,200
D 1,310 1,350
E 65,400 19,400
Calculate the coefficient of variation and rank the five alternatives from the lowest risk to the highest risk by using the coefficient of variation.
(Round your answers to 3 decimal places.)
7/10/2021 Assignment Print View
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Alternatives Coefficient of
Variation Rank
A
B
C
D
E
References
Worksheet Difficulty: 1 Easy Learning Objective: 13-01 The concept of risk is based on
uncertainty about future outcomes. It requires the
computation of quantitative measures as well as qualitative
considerations.
Sample Solution