TABLE 17-4
A stock portfolio has the following returns under the market conditions listed below.
$$\begin{array} { c c c }
\text { Market Condition } & \text { Probability } & \text { Return } \
\hline \text { Bull } & 0.4 & \$ 200 \
\text { Stable } & 0.3 & \$ 100 \
\text { Bear } & 0.3 & - \$ 100
\end{array}$$
-Referring to Table 17-4, what is the coefficient of variation?
A) 90.3%
B) 100%
C) 88.8%
D) 156.1%

Question

TABLE 17-4
A stock portfolio has the following returns under the market conditions listed below.
 $$\begin{array} { c c c } 
\text { Market Condition } & \text { Probability } & \text { Return } \
\hline \text { Bull } & 0.4 & \$ 200 \
\text { Stable } & 0.3 & \$ 100 \
\text { Bear } & 0.3 & - \$ 100
\end{array}$$
-Referring to Table 17-4, what is the coefficient of variation?
A) 90.3%
B) 100%
C) 88.8%
D) 156.1%

Quizplus · Accepted Answer

The coefficient of variation is calculated as the standard deviation divided by the expected return. The expected return is $80, and the standard deviation is $125.99, resulting in a coefficient of variation of 156.1%.

TABLE 17-4 a Stock Portfolio Has the Following Returns Under

TABLE 17-4
a Stock Portfolio Has the Following Returns Under