Braniff Ground Services shares have an expected return of 9 per cent and a variance of 0.25 per cent. What is the coefficient of variation for Braniff?
A) 0.0278
B) 0.0556
C) 1.800
D) 36.00

Question

Quizplus · Accepted Answer

The coefficient of variation (CV) is calculated as the ratio of the standard deviation to the expected return. 
CV = (0.25% / 9%) x 100%
CV = 0.0278 or 2.78%
Therefore, the answer is B) 0.0556, which is the closest option to the calculated value of the CV.

Braniff Ground Services Shares Have an Expected Return of 9