
Concept explainers
Expected
Standard deviation is the financial measure of risk and stability on the
Coefficient of variance is a measure used to calculate the total risk per unit of return of an investment.

Explanation of Solution
Calculate the expected return as follows:
Therefore, the expected return is
Calculate the standard deviation as follows:
Therefore, the standard deviation is
Calculate the coefficient of variance as follows:
Therefore, the coefficient of variance is
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Chapter 8 Solutions
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