1. Risk and Return, Coefficient of
Variation
Based on the following information, calculate the coefficient of variation and select the best investment based on the risk/reward relationship.
Std Dev. Exp. Return
Company A 10.4 15.2
Company B 14.6 22.9
2. Risk & Return and the CAPM.
Based on the following information, calculate the required return based on the CAPM:
Risk-Free Rate = 3%
Market Return =10.5%
Beta = 1.2