Expected rate of return is the anticipated profit or loss of an investment to be received by the investor. It is computed by expecting the probabilities of a maximum range of returns on an investment. Standard deviation is the financial measure of risk and stability on the investment returns. Coefficient of variance is a measure used to calculate the total risk per unit of return of an investment.

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Chapter 8, Problem 5PROB

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Expected rate of return is the anticipated profit or loss of an investment to be received by the investor. It is computed by expecting the probabilities of a maximum range of returns on an investment.

Standard deviation is the financial measure of risk and stability on the investment returns.

Coefficient of variance is a measure used to calculate the total risk per unit of return of an investment.

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