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Five investment alternatives have the following returns and standard deviations of returns.        Alternatives Returns: Expected Value Standard Deviation A $ 1,110 $ 1,270 B 3,970 820 C 3,970 1,330 D 5,790 2,650 E 12,500 7,350      Calculate the coefficient of...

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Finance

Five investment alternatives have the following returns andstandard deviations of returns.    
  

AlternativesReturns:
Expected Value		Standard
Deviation
A$1,110$1,270
B3,970820
C3,9701,330
D5,7902,650
E12,5007,350

    
Calculate the coefficient of variation and rank the fivealternatives from lowest risk to the highest risk by using thecoefficient of variation. (Round your answers to 3 decimalplaces.)
  

Answer & Explanation Solved by verified expert
4.0 Ratings (626 Votes)
Solution The coefficient of variation is a measure of risk per unit of return or reward The formula for calculating the coefficient of variation is Standard Deviation Return Thus the 1 Coefficient of variation for Investment Alternative A As per the Information given in the question we have Return 1110 and Standard Deviation 1270 Applying the above values in    See Answer
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Five investment alternatives have the following returns andstandard deviations of returns.      AlternativesReturns:Expected ValueStandardDeviationA$1,110$1,270B3,970820C3,9701,330D5,7902,650E12,5007,350    Calculate the coefficient of variation and rank the fivealternatives from lowest risk to the highest risk by using thecoefficient of variation. (Round your answers to 3 decimalplaces.)  

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