A potential venture investment has the following possible


A potential venture investment has the following possible outcomes:

 

584_a potential venture.png

A. What is the expected rate of return on the venture?
B. Calculate the variance and standard deviation of the rates of return for the venture.
C. Calculate the coefficient of variation of the rates of return for the venture. If the coefficient of variation of the rates of return for your prior venture investments is 4.0, would the new venture be considered as being less or morerisky?

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Finance Basics: A potential venture investment has the following possible
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