Instruction 17-5
A stock portfolio has the following returns under the market conditions listed below.
$$\begin{array} { l l l }
\text { Market Condition } & \text { Probability } & \text { Return } \
\text { Bull } & 0.4 & \$ 200 \
\text { Stable } & 0.3 & \$ 100 \
\text { Bear } & 0.3 & \$ 100
\end{array}$$
-Referring to Instruction 17-5,what is the coefficient of variation?
A) 156.1%
B) 88.8%
C) 100%
D) 90.3%

Question

Instruction 17-5
A stock portfolio has the following returns under the market conditions listed below.
 $$\begin{array} { l l l } 
\text { Market Condition } & \text { Probability } & \text { Return } \
\text { Bull } & 0.4 & \$ 200 \
\text { Stable } & 0.3 & \$ 100 \
\text { Bear } & 0.3 & \$ 100
\end{array}$$
-Referring to Instruction 17-5,what is the coefficient of variation?
A) 156.1%
B) 88.8%
C) 100%
D) 90.3%

Quizplus · Accepted Answer

The coefficient of variation is a measure of the dispersion of a probability distribution. It is calculated by dividing the standard deviation by the mean. In this case, the mean return is $133.33 and the standard deviation is $57.74. Therefore, the coefficient of variation is 57.74 / 133.33 = 0.433, or 43.3%.

Instruction 17-5 a Stock Portfolio Has the Following Returns Under

Instruction 17-5
a Stock Portfolio Has the Following Returns Under