Cheng Inc.is considering a capital budgeting project that has an expected return of 25% and a standard deviation of 30%.What is the project's coefficient of variation?
A)1.20
B)1.26
C)1.32
D)1.39
E)1.46

Question

Quizplus · Accepted Answer

The coefficient of variation is calculated by dividing the standard deviation by the expected return. Here, it is 30% / 25% = 1.20.

Cheng IncIs Considering a Capital Budgeting Project That Has an Expected