Calculate the coefficient of variationfor each alternative

Assignment Help Financial Management
Reference no: EM132075157

Coefficient of variation Metal Manufacturing has isolated four alternatives for meeting its need for increased production capacity. The data gathered relative to each of these alternatives is summarized in the following table.

Alternative

Expected Return

Standard Deviation of Return

A

20%

7.0%

B

22%

9.5%

C

19%

6.0%

D

16%

5.5%

a. Calculate the coefficient of variationfor each alternative.

b. If the firm wishes to minimize risk, which alternative do you recommend? Why

Reference no: EM132075157

Questions Cloud

Calculate the macaulay duration d : Calculate the Macaulay duration D(.07, infinity) and the modified duration D(.07, 1) of the bond.
Use for a lecture in an introductory statistics class : For your Signature Assignment, you will create a PowerPoint presentation suitable to use for a lecture in an introductory statistics class.
How much cash will the company collect in october : The company expects to sell 45% of its merchandise for cash. How much cash will the company collect in October
What are the characteristics of a good average : What are the characteristics of a good average? What is the relationship between various measures of central tendency and what are there applications?
Calculate the coefficient of variationfor each alternative : Coefficient of variation Metal Manufacturing has isolated four alternatives for meeting its need for increased production capacity.
Service person experience in preventive maintenance : The number of copy machines to be serviced, x1, and the service person's experience in preventive maintenance, x2.
Calculate the sues holding period yield rate : Today is 1 January 2018. Sue just purchased a 10-year 4.5% p.a. Treasury bond with a face value of $100 at the yield rate of j2 = 4.3% p.a.
What is bayesian analysis and stochastic modelling : What is Bayesian Analysis and Stochastic Modelling? Explain in 50 words. Please provide explanation.
Calculate the closing stock as at june : Jones's mark-up is 50% on cost of goods sold. His average stock during the year was £12,000. Calculate the closing stock as at 30 June 19X7

Reviews

Write a Review

Financial Management Questions & Answers

  Foreign company acquisition

Acquisition by a foreign company and the effects of that decision and the results of foreign exchange in Euro and the exchange rate differences.

  Financial management for profit and non profit organizations

In this essay, we are going to discuss the issues of financial management in a non-profit organisation.

  Method for estimating a venture''s value

Evaluate venture's present value, cash and surplus cash and basic venture capital.

  Replacement analysis

This document show the Replacement Analysis of modling machine. Is replacement give profit to company or not?

  Business finance task - capital budgeting

Your company is considering using the payback period for capital-budgeting. Discuss the advantages and disadvantages of this technique.

  Analysis of the investment

In this project, you will focus on one of these: the additional cost resulting from the purchase of an apple press (a piece of equipment required to manufacture apple juice).

  Conduct a what-if analysis

Review the readings and media for this unit, including the Anthony's Orchard case study media. Familiarise yourself with the Anthony's Orchard company and its current situation.

  Determine operational expenditures

Organisations' behaviour is guided by financial data. In the short term, such data will help determine operational expenditures; in the long term, historical data may help generate forecasts aimed at determining strategic plans. In both instances.

  Personal financial management

How much will you have left over each half year if you adopt the latter course of action?

  Sources of finance for expansion into new foreign markets

A quoted company is considering several long-term sources of finance for expansion into new foreign markets.

  Long term financial planning

This assignment is designed for analyze Long term financial planning begins with the sales forecast and the key input in the long term fincial planning.

  Explain the role of fincial manager

This assignment explain the role of fincial manager, function of manger. And what are the motives of financial manager.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd