Investment A has an expected value of 5 and a standard deviation of 2. Investmen
ID: 1188108 • Letter: I
Question
Investment A has an expected value of 5 and a standard deviation of 2. Investment B has an expected value of 10 and a standard deviation of 5. Using the coefficient of variation approach to comparing these two investments,Answer Investment A would be selected because it has the larger coefficient of variation Investment B would be selected because it has the larger coefficient of variation Investment A would be selected because it has the smaller coefficient of variation Investment B would be selected because it has the smaller coefficient of variation Investment A would be selected because it has the larger coefficient of variation Investment B would be selected because it has the larger coefficient of variation Investment A would be selected because it has the smaller coefficient of variation Investment B would be selected because it has the smaller coefficient of variation Investment A would be selected because it has the larger coefficient of variation Investment B would be selected because it has the larger coefficient of variation Investment A would be selected because it has the smaller coefficient of variation Investment B would be selected because it has the smaller coefficient of variationExplanation / Answer
coefficient of variation of Investment A = 2/5 = 40%. ============================================================================================================================================ coefficient of variation of Investment B = 5/10 = 50%. ================================================================================================================================================================================================================================================== c) Investment A would be selected because it has the smaller coeffiecent of variation =======================================================================================================================
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