Problem 9-5 Total Risk (LG9-3) Rank the following three stocks by their level of total risk,...

Question

Question

Problem 9-5 Total Risk (LG9-3) Rank the following three stocks by their level of total risk, highest to lowest. Rail Haul has

Answer 1

Answer #1

Coefficient of variation = Standard deviation/Average

Lower the value better it is

Rail hall

Coefficient of variation = 25/12

= 2.0833

Idol staff

Coefficient of variation = 35/15

= 2.33

Poer r us

Coefficient of variation = 20/9

= 2.22

Rail hall rank 1

Idol staff rank 3

Poer r us rank 2

Answer 2

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