Concept explainers
a)
To determine:
Less risky project.
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.
Return: In financial context, return is seen as percentage that represents the profit in an investment.
b)
To determine:
Lowest standard deviation.
Introduction:
The standard deviation measures the volatility of the stock. It measures in absolute terms the dispersion of asset risk around its mean.
c)
To determine:
Coefficient of variation.
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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Gitman: Principl Manageri Finance_15 (15th Edition) (What's New in Finance)
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