The following are the returns ($) for two stocks. Which stock would you choose and why? B Expected monetary value Standard deviation Choose the correct answer below. A 160 30 160 40 O A. Choose stock B because it has a lower coefficient of variation than stock A. O B. Choose stock A because it has a higher coefficient of variation than stock B. OC. Choose stock B because it has a higher coefficient of variation than stock A. O D. Choose stock A because it has a lower coefficient of variation than stock B.

MATLAB: An Introduction with Applications
6th Edition
ISBN:9781119256830
Author:Amos Gilat
Publisher:Amos Gilat
Chapter1: Starting With Matlab
Section: Chapter Questions
Problem 1P
icon
Related questions
Question
The following are the returns ($) for two stocks. Which stock would you choose and why?

|            |  A   |  B   |
|------------|------|------|
| Expected monetary value | 160  | 160  |
| Standard deviation      | 30   | 40   |

Choose the correct answer below.

- A. Choose stock B because it has a lower coefficient of variation than stock A.
- B. Choose stock A because it has a higher coefficient of variation than stock B.
- C. Choose stock B because it has a higher coefficient of variation than stock A.
- D. Choose stock A because it has a lower coefficient of variation than stock B.
Transcribed Image Text:The following are the returns ($) for two stocks. Which stock would you choose and why? | | A | B | |------------|------|------| | Expected monetary value | 160 | 160 | | Standard deviation | 30 | 40 | Choose the correct answer below. - A. Choose stock B because it has a lower coefficient of variation than stock A. - B. Choose stock A because it has a higher coefficient of variation than stock B. - C. Choose stock B because it has a higher coefficient of variation than stock A. - D. Choose stock A because it has a lower coefficient of variation than stock B.
Expert Solution
steps

Step by step

Solved in 2 steps

Blurred answer
Similar questions
Recommended textbooks for you
MATLAB: An Introduction with Applications
MATLAB: An Introduction with Applications
Statistics
ISBN:
9781119256830
Author:
Amos Gilat
Publisher:
John Wiley & Sons Inc
Probability and Statistics for Engineering and th…
Probability and Statistics for Engineering and th…
Statistics
ISBN:
9781305251809
Author:
Jay L. Devore
Publisher:
Cengage Learning
Statistics for The Behavioral Sciences (MindTap C…
Statistics for The Behavioral Sciences (MindTap C…
Statistics
ISBN:
9781305504912
Author:
Frederick J Gravetter, Larry B. Wallnau
Publisher:
Cengage Learning
Elementary Statistics: Picturing the World (7th E…
Elementary Statistics: Picturing the World (7th E…
Statistics
ISBN:
9780134683416
Author:
Ron Larson, Betsy Farber
Publisher:
PEARSON
The Basic Practice of Statistics
The Basic Practice of Statistics
Statistics
ISBN:
9781319042578
Author:
David S. Moore, William I. Notz, Michael A. Fligner
Publisher:
W. H. Freeman
Introduction to the Practice of Statistics
Introduction to the Practice of Statistics
Statistics
ISBN:
9781319013387
Author:
David S. Moore, George P. McCabe, Bruce A. Craig
Publisher:
W. H. Freeman