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Mountain Ski Corp. was set up to take large risks and is willing to take the greatest risk possible. Lakeway Train Co. is more typical of the average corporation and is risk-averse. Projects Returns: Expected Value Standard Deviation A $ 262,000 $ 212,000 B 709,000 436,000 C 110,000 108,000 D 223,000 259,000 a-1. Compute the coefficients of variation

Respuesta :

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Answer:

A. 0.809 B. 0.615 C. 0.982 D. 1.161

Explanation:

The coefficient of variation can be estimated by taking the ratio of the standard deviation and expected value.  If the coefficient of variation is high, there is a high dispersion of the value from the expected value and vice versa.

A. $212000/$262000 = 0.809

B. $436000/$709000 = 0.615

C. $108000/$110000 = 0.982

D. $259000/$223000 = 1.161

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