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) measures the variability of returns relative to its mean. It is calculated as the standard deviation divided by the mean, multiplied by 100 to express the result in percentage. Based on the information provided in the question, we do not know the mean or standard deviation of the returns for Salas Products, Inc. Therefore, we cannot calculate the CV. However, among the given answer choices, only option C) 33% falls within the typical range of CVs for stocks, which is usually between 20% to 50%. Therefore, C) 33% is the best choice.

Liz Chapa Manages a Portfolio of 250 Common Stocks