Calculate the coefficient of variation for each alternative

Assignment Help Financial Econometrics

Reference no: EM13327835

Coefficient of variation Metal Manufacturing has isolated four alternatives for meeting its need for increased production capacity. The following table summarizes data gathered relative to each of these alternatives. Alternative Expected return Standard deviation of return A 21% 8.3% B 25% 9.8% C 17% 6.7% D 15% 3.4%

a) calculate the coefficient of variation for each alternative

b) if the firm wishes to minimize risk , which alternative do you recommend? why?

Reference no: EM13327835

Questions Cloud

Determine balance in each account and prepare a trail sheet : Prepare journal entries and record the following October transactions in the T-Accounts and key all entries with the number identifying the transaction. Determine the balance in each account and prepare a trail balance sheet as of October 31.

A block is launched up an incline with an initial velocity : A block is launched up an incline with an initial velocity of v subscript 0

Successful business marketing strategy : Marketing is an ever-changing landscape, which we’ve seen with the rise and fall of SEO and the revolution of Inbound Marketing led by the guys over at HubSpot. Social Media has also become one of the big influencers in marketing, becoming an integra..

Determine the maximum distance the center of the coin : A coin placed on a turntable rotating at 33.0 rev/min will stay there if its center is placed no further than 7.2 cm from the axis of rotation. What is the maximum distance the center of the coin can be placed from the axis

Calculate the coefficient of variation for each alternative : Coefficient of variation Metal Manufacturing has isolated four alternatives for meeting its need for increased production capacity. The following table summarizes data gathered relative to each of these alternatives.

Businesses who take social marketing seriously : Businesses who take social marketing seriously and take it as a long term investment are the ones who are getting dividends out of it. Social networking is bending the rules of online marketing and businesses are quick to exploit this tremendous mark..

Determine what will be the value of the house in 7 years : Say that you purchase a house for $150,000 by getting a mortgage for $135,000 and paying a $15,000 down payment. Assume you get a 15-year mortgage with a 6% interest rate.

What is virtual memory : What are character devices and block devices? What is the difference between them? What types of devices are represented by block device files?

Social media-business transparency and engagement : Social media is helping to forge a new era in business transparency and engagement, creating both new challenges and opportunities. Gone are the days when companies could rely on carefully crafted press releases or flashy ad campaigns to communicate ..

User Account

All Pages