alternatives с D B Alternatives alternatives have the following returns and standard deviations of returns. Returns: Expected Value $ 1,460 1,370 10,300 1,180 67,600 ABCDE Coefficient of Variation Standard Deviation Calculate the coefficient of variation and rank the five alternatives from the lowest risk to the highest risk by using the coefficient of wariation. (Round your answers to 3 decimal places.) Rank $ 780 1,490 9,100 1,060 21,500
alternatives с D B Alternatives alternatives have the following returns and standard deviations of returns. Returns: Expected Value $ 1,460 1,370 10,300 1,180 67,600 ABCDE Coefficient of Variation Standard Deviation Calculate the coefficient of variation and rank the five alternatives from the lowest risk to the highest risk by using the coefficient of wariation. (Round your answers to 3 decimal places.) Rank $ 780 1,490 9,100 1,060 21,500
Essentials of Business Analytics (MindTap Course List)
2nd Edition
ISBN:9781305627734
Author:Jeffrey D. Camm, James J. Cochran, Michael J. Fry, Jeffrey W. Ohlmann, David R. Anderson
Publisher:Jeffrey D. Camm, James J. Cochran, Michael J. Fry, Jeffrey W. Ohlmann, David R. Anderson
Chapter5: Probability: An Introduction To Modeling Uncertainty
Section: Chapter Questions
Problem 28P
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Risk and return
Before understanding the concept of Risk and Return in Financial Management, understanding the two-concept Risk and return individually is necessary.
Capital Asset Pricing Model
Capital asset pricing model, also known as CAPM, shows the relationship between the expected return of the investment and the market at risk. This concept is basically used particularly in the case of stocks or shares. It is also used across finance for pricing assets that have higher risk identity and for evaluating the expected returns for the assets given the risk of those assets and also the cost of capital.
Question
![Alternatives
A
C
D
E
alternatives have the following returns and standard deviations of returns.
Alternatives
A
B
C
D
E
Returns:
Expected Value
$ 1,460
1,370
10,300
1,180
67,600
Coefficient of
Variation
Standard
Deviation
Calculate the coefficient of variation and rank the five alternatives from the lowest risk to the highest risk by using the coefficient of
variation. (Round your answers to 3 decimal places.)
Rank
$
780
1,490
9,100
1,060
21,500
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Transcribed Image Text:Alternatives
A
C
D
E
alternatives have the following returns and standard deviations of returns.
Alternatives
A
B
C
D
E
Returns:
Expected Value
$ 1,460
1,370
10,300
1,180
67,600
Coefficient of
Variation
Standard
Deviation
Calculate the coefficient of variation and rank the five alternatives from the lowest risk to the highest risk by using the coefficient of
variation. (Round your answers to 3 decimal places.)
Rank
$
780
1,490
9,100
1,060
21,500
< Prev
VOSTURB
3 of 8
Next >
1469 47 meld
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