Wei Inc. is considering a capital budgeting project that has an expected return of 25% and a standard deviation of 30%. What is the project's coefficient of variation?
A) 1.20
B) 1.26
C) 1.32
D) 1.39
E) 1.46

Question

Quizplus · Accepted Answer

The coefficient of variation is calculated by dividing the standard deviation by the expected return. Here, it is 30% / 25% = 1.20.

Wei Inc Is Considering a Capital Budgeting Project That Has an an Expected