Liz Chapa manages a portfolio of 250 common stocks.Her staff compiled the following performance statistics for two new stocks: The coefficient of variation for Salas Products,Inc.is ___.

Question

Liz Chapa manages a portfolio of 250 common stocks.Her staff compiled the following performance statistics for two new stocks:  The coefficient of variation for Salas Products,Inc.is ___.

Quizplus · Accepted Answer

The coefficient of variation (CV) is calculated by dividing the standard deviation by the mean, and then multiplying by 100 to get a percentage. From the given statistics, we know that Salas Products, Inc. had an average return of 15% and a standard deviation of 5%, so the CV is (5/15)*100 = 33.33%, which rounds to 33%. Therefore, the best choice is (C). None of the other options match this value.

Liz Chapa Manages a Portfolio of 250 Common Stocks