Question: 5 investment alternatives have the following returns and standard deviations of returns.
|
Returns-
|
Standard
|
|
Alternative
|
Expected Value
|
Deviation
|
|
A
|
$5,000
|
$1,200
|
|
B
|
4,000
|
$600
|
|
C
|
4,000
|
$800
|
|
D
|
8,000
|
$3,200
|
|
E
|
10,000
|
$900
|
Determine the coefficient of variation, rank the 5 alternatives from lowest risk to highest risk.