Calculate the coefficient of variation for each project

Assignment Help Financial Management

Reference no: EM131992398

Standard deviation versus coefficient of variation as measures of risk ? Greengage, Inc., a successful? nursery, is considering several expansion projects. All of the alternatives promise to produce an acceptable return. Data on four possible projects appear in the following? table:

a. Which project is least? risky, judging on the basis of range??

b. Which project has the lowest standard deviation??

Explain why standard deviation may not be an entirely appropriate measure of risk for purposes of this comparison.

c. Calculate the coefficient of variation for each project. Which project do you think? Greengage's owners should? choose?

The coefficient of variation for project A is _________ round to three decimal places

A	13.4%	4.3%	3.9%
B	13.5%	4.7%	3.6%
C	13.1%	6.1%	2.9%
D	11.6%	4.5%	3.3%

Reference no: EM131992398

Questions Cloud

What is first payment : You have borrowed $210000 for a new house. The rate is 6%. Repayment is structured as a 4% growing perpetuity. What is your first payment?

What is the inventory turnover rate : SRC, Inc., sells its inventory in an average of 43 days and collects its receivables in 3.6 days, on average. What is the inventory turnover rate?

What are the benefits to these stakeholders : Who are the stakeholders involved in corporate governance? What are the benefits to these stakeholders?

Discounted valuation of its projected dividends : If the risk-free rate is 3.4%, the market risk premium is 6%, and the company's beta is 1.1, what should the stock sell for today based on a discounted

Calculate the coefficient of variation for each project : Explain why standard deviation may not be an entirely appropriate measure of risk for purposes of this comparison.

William hartman principles of school budgeting : As a special education administrator, would you develop a school budget that is based on William Hartman's principles of school budgeting? Why or why not?

What is the maximum amount you are willing to pay for share : The company will pay an annual dividend of $2 in year four and will maintain a constant annual dividend growth rate of 1.2 percent thereafter.

Calculate the new levered beta : St. Louis Brewing Co. has an unlevered beta of 1.1 , however, they want to add debt until their debt-to-equity ratio is 2.9 .

Relationship between bond prices and market interest rate : 1. Describe the relationship between bond prices and the market interest rate?

User Account

All Pages