$\begin{array}{|l|c|c|}
\hline \text { Asset } & \begin{array}{c}
\text { Expected return } \
(\mathrm{E}(\mathrm{R}) \boldsymbol{)}
\end{array} & \begin{array}{c}
\text { Standard deviation } \
\text { (ธ) }
\end{array} \
\hline \mathrm{A} & 10 \% & 9 \% \
\hline \mathrm{B} & 12 \% & 8 \% \
\hline \mathrm{C} & 15 \% & 12 \% \
\hline \mathrm{D} & 13 \% & 11 \% \
\hline
\end{array}$
-Which of the four investments has the highest coefficient of variation?
A) $\text { Asset } A$
B) $\text { Asset } B$
C) $\text { Asset } C$
D) $\text { Asset } D$

Question

$\begin{array}{|l|c|c|}
\hline \text { Asset } & \begin{array}{c}
\text { Expected return } \
(\mathrm{E}(\mathrm{R}) \boldsymbol{)}
\end{array} & \begin{array}{c}
\text { Standard deviation } \
\text { (ธ) }
\end{array} \
\hline \mathrm{A} & 10 \% & 9 \% \
\hline \mathrm{B} & 12 \% & 8 \% \
\hline \mathrm{C} & 15 \% & 12 \% \
\hline \mathrm{D} & 13 \% & 11 \% \
\hline
\end{array}$
-Which of the four investments has the highest coefficient of variation?
A) $\text { Asset } A$
B) $\text { Asset } B$ 
C) $\text { Asset } C$
D) $\text { Asset } D$

Quizplus · Accepted Answer

Using equation 1.10,page 18,the coefficient of variation (CV)can be calculated by dividing the standard deviation by the expected return.That is,the CV of asset A is 0.09/0.10 = 0.9,for asset B is 0.08/0.12 = 0.67,for asset C is 0.12/0.15 = 0.8 and for asset D is 0.11/0.13 = 0.85.Therefore,asset A has the highest coefficient of variation.

-Which of the Four Investments Has the Highest Coefficient of }