Soho Inc. is considering an investment that has an expected return of 22.5% and a standard...
Soho Inc. is considering an investment that has an expected return of 22.5% and a standard deviation of 8%. What is the investment's coefficient of variation?
Homework Answers
Coefficient of variation is a standardized measure of dispersion about the expected value.
It is calculated using the below formula:
Coefficient of variation= Standard deviation/ Expected return
= 8/22.50 = 0.3556.
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