by the ho x Womens Clothing and Shoesx PrettyLittle Thing USA Take Test:ABC-Inte

Question

by the ho x Womens Clothing and Shoesx PrettyLittle Thing USA Take Test:ABC-Intermedi course assessment id 56903 1&course; id Save and Submit Click Submit to complete this assessment. Qrestion 4 o Question 4 10 points Save Answer Erickson Inc. is considering two capital budget ing projects. Project A has an expected return of 25% and a standard deviation of 30, and the Project B has an expected return of and standard deviation ot 17. What is the coetticient of variation of each project? wieb a better pEoject2 delehe rebu K.

Explanation / Answer

Coefficint of variation=Standard Devaiton/Mean

Coefficient of variation of Project A=30%/25%=1.2

Coefficient of variation of Project B=17%/15%=1.13

Lower the coefficient of variation, better is the project.

hence, project B is better

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