-An investment has a standard deviation of 12 percent and an expected return of 7 percent. What is the coefficient of variation for this investment?
A) 1.714
B) 1.372
C) 0.714
D) 0.583
E) 0.500

Question

-An investment has a standard deviation of 12 percent and an expected return of 7 percent. What is the coefficient of variation for this investment?
A) 1.714 
B) 1.372 
C) 0.714 
D) 0.583 
E) 0.500

Quizplus · Accepted Answer

The coefficient of variation is calculated as the standard deviation divided by the expected return. Here, it is 12% / 7% = 1.714.

-An Investment Has a Standard Deviation of 12 Percent and an Expected