What is the investment coefficient of variation

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Problem 1: Jones' Trophy Shop is considering an investment that has an expected return of 12% and a standard deviation of 10%. What is the investment's coefficient of variation? If his firm's normal investments have a CV of 1.5 to 2.0, how would you classify this investment (high, average, or low risk). Based on your classification would you change the required rate of return used to analyze this investment? Why or why not?

Reference no: EM132721842

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