Calculate the coefficient of variationfor each alternative

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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

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