Standard deviation or coefficient of variation

Reference no: EM1344483

The standard deviation of Investment A's return is 10% while the standard deviation of Investment B is 5%. Based solely on standard deviation, which investment is less risky? Based solely on coefficient of variation, which investment is less risky? Given that the expected rates of return are not equal, which is a better measure - standard deviation or coefficient of variation?

2. Class, US Treasury debt typically has a 5-year maturity. Assume that newly issued 5-year T notes have a coupon rate of 3 percent and sell at par. What would be the impact on bond value if inflation increases 1% resulting in an increase in YTM of 4% shortly after issuance?

Reference no: EM1344483

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