Coefficient of variation approach to comparing investment

Assignment Help International Economics

Reference no: EM1367924

Investment A has an expected value of five and a standard deviation of two. Investment B has an expected price of 10 and a standard deviation of five. Using the coefficient of variation approach to comparing these two investments:

1. Investment A would be selected because it has the larger coefficient of variation

2. Investment B would be selected because it has the larger coefficient of variation.

3. Investment A would be selected because it has the smaller coefficient of variation.

4. Investment B would be selected because it has the smaller coefficient of variation.

Reference no: EM1367924

Questions Cloud

Determine average fixed cost : If the total cost of producing 20 units of output is $1000 and the average variable cost is $35, what is the firm's average fixed cost at that level of output?

Employee competence and accountability measurements : Do we have a responsibility to our staff and society to promote and encourage individual or personal responsibility - Is there a way to have an individual become accountable for his or her own actions

Qualitative research report-nursing research : This is for a graduate level nursing research subject in which I require to analyze only three parts of any qualitative research report, but before I do this, I need your help in understanding what would those sections be?

Describe law of diminishing returns : What is the difference between explicit and implicit costs? Which of the costs is most closely associated with opportunity costs and why?

Coefficient of variation approach to comparing investment : Investment A has an expected value of five and a standard deviation of two. Investment B has an expected price of 10 and a standard deviation of five.

How would a capitalist system differ : In contrast to a socialist economic organization, how would a capitalist system differ. Consider who owns capital (means of production) in two models.

Create eer model using visio notation or supertypes notation : Create an EER model for the following situation using the traditional EER notation, Visio notation or supertypes notation.

Identify initiatives that we as managers-leader : Identify three initiatives that we as managers and leader could implement to promote the asking of questions within the specific corporate culture

Four types of market failure : Each instance which follows is an example of one of four types of market failure (imperfect market structure; the existence of public goods; the presence of external costs and benefits; and imperfect information).

User Account

All Pages