What is the investment coefficient of variation

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1. Rock company’s stock has a 20% chance of producing a 30% return, a 68% chance of producing a 10% return, and a 12% chance of producing a 16% return. What is the firm’s expected rate of return?

2. Bae Inc. is considering an investment that has an expected return of 43% and a standard deviation of 10%. What is the investment's coefficient of variation

3. Corporation has the opportunity to invest in a new project, the details of which are shown below. What is the Year 1 cash flow for the project?

Sales revenues $105,000

Depreciation $10,000

Other operating costs $35,000

Interest expense $4,000

Tax rate 25.00%

Reference no: EM132014324


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