
Concept explainers
a)
To determine:
Coefficient of variation
Introduction:
The coefficient of variation is an asset risk indicator that measures the relative dispersion. It describes the volatility of asset returns relative to its mean or expected return.
b)
To determine:
Alternative recommended to minimize risk.
Introduction:
Risk: The risk can be defined as the uncertainty attached to an event such as investment where there is some amount of risk associated to it as there can be either gain or loss.
The coefficient of variation is an asset risk indicator that measures the relative dispersion. It describes the volatility of asset returns relative to its mean or expected return.

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Chapter 8 Solutions
Principles of Managerial Finance, Student Value Edition (15th Edition) (The Pearson Series in Finance)
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