Possible outcomes for three investment alternatives and their probabilities of occurrence are given Failure Acceptable Successful Alternative 1 Alternative 2 Alternative 3 Outcomes Probability Outcomes Probability Outcomes Probability 50 0.40 .70 0.20 85 0.40 0.20 130 0.40 325 0.40 265 0.40 410 Alternative 1 Alternative 2 Alternative 3 80 135 Using the coefficient of variation, rank the three alternatives in terms of risk from lowest to highest. Note: Do not round intermediate calculations. Round your answers to 3 decimal places. Coefficient of Variation 0.40 0.20 Rank

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
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Possible outcomes for three investment alternatives and their probabilities of occurrence are given next.
Failure
Acceptable
Successful
Alternative 1
Alternative 2
Alternative 3
Outcomes Probability Outcomes Probability Outcomes Probability
50
0.40
70
0.20
85
0.40
0.20
130
0.40
325
0.40
0.40
265
0.40
410
0.20
Alternative 1
Alternative 2
Alternative 3
80
135
Using the coefficient of variation, rank the three alternatives in terms of risk from lowest to highest.
Note: Do not round intermediate calculations. Round your answers to 3 decimal places.
Coefficient of
Variation
Rank
Transcribed Image Text:Possible outcomes for three investment alternatives and their probabilities of occurrence are given next. Failure Acceptable Successful Alternative 1 Alternative 2 Alternative 3 Outcomes Probability Outcomes Probability Outcomes Probability 50 0.40 70 0.20 85 0.40 0.20 130 0.40 325 0.40 0.40 265 0.40 410 0.20 Alternative 1 Alternative 2 Alternative 3 80 135 Using the coefficient of variation, rank the three alternatives in terms of risk from lowest to highest. Note: Do not round intermediate calculations. Round your answers to 3 decimal places. Coefficient of Variation Rank
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