Economic conditions remain healthy

Reference no: EM13942179

An investment is expected to yield a return of 14% if economic conditions remain healthy, or improve. If a downturn occurs the expected return is just 4%. The probablility of an economic downturn is 0.25, whereas a continuation of current conditions, or an improved ecomomy, has a probability of 0.75. If the variance of the expected returns was calculated to be 9%, the coefficient of variation for the investment is ?

Reference no: EM13942179

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