Domino's shares have an expected return of 9 per cent and a variance of 0.25 per cent. What is the coefficient of variation for Domino's?
A) 0.0278.
B) 0.0556.
C) 2.7778.
D) 5.5556.

Question

Quizplus · Accepted Answer

The coefficient of variation (CV) is calculated as the standard deviation (σ) divided by the mean (μ), expressed as CV = σ/μ. First, find the standard deviation by taking the square root of the variance: √0.25% = 0.5%. Then, divide the standard deviation by the expected return: 0.5% / 9% = 0.0556.

Domino's Shares Have an Expected Return of 9 Per Cent