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THE MAIN PART I DO NOT UNDERSTAND IS HOW TO RANK THE OUTCOMES! Please Explain ho

ID: 2736877 • Letter: T

Question

THE MAIN PART I DO NOT UNDERSTAND IS HOW TO RANK THE OUTCOMES! Please Explain how to rank the outcomes along with the answers.. thanks so much

Five investment alternatives have the following returns and standard deviations of returns.

     

   

Calculate the coefficient of variation and rank the five alternatives from lowest risk to the highest risk by using the coefficient of variation. (Round your answers to 3 decimal places.)

       

Five investment alternatives have the following returns and standard deviations of returns.

Explanation / Answer

Coefficient of Variation = Standard deviation / Expected Value

Alternatives =Std Deviation /Expected value Coefficient of Variations Rank(lowest risk to highest risk) A =500/1350 0.371 E B =1470/1180 1.246 C C =2100/7700 0.273 A D =690/1810 0.382 D E =14700/63300 0.233 B