Risk and return coefficient of variation

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1.Risk and Return, Coefficient of Variation 

Based on the following information, calculate the coefficient of variation and select the best investment based on the risk/reward relationship.

Std Dev. Exp. Return
Company A 7.4 13.2
Company B 11.6 18.9

3. Risk & Return and the CAPM.
 Based on the following information, calculate the required return based on the CAPM:
Risk Free Rate = 3%
Market Return .5%
Beta = 1.2

Portfolio Theory Risk. 
What is portfolio theory and why is it important to investing behavior? 

Your response should be at least 250 words in length. You are required to use at least your textbook as source material for your response. All sources used, including the textbook, must be referenced; paraphrased and quoted material must have accompanying citations.

Reference no: EM13830592

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