Investment alternatives

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  1. 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