Question: Alternative 1 Alternative 3 Alternative 2 Outcomes Probability Outcomes Probability Outcomes Probability Failure Acceptable.... Successful 50 90 135 0.2 0.4 0.4 190 225 0.3 0.4

 Alternative 1 Alternative 3 Alternative 2 Outcomes Probability Outcomes Probability Outcomes

Alternative 1 Alternative 3 Alternative 2 Outcomes Probability Outcomes Probability Outcomes Probability Failure Acceptable.... Successful 50 90 135 0.2 0.4 0.4 190 225 0.3 0.4 95 215 380 0.2 0.6 0.2 Rank the three alternatives in terms of risk from lowest to highest (compute the coefficient of variation). Five investment alternatives have the following returns and standard deviations 7. of returns: Returns: Expected Value Standarod Deviation $1,200 Alternatives $ 5,000 4,000 4,000 8,000 10,000 3,200 Using the coefficient of variation, rank the five alternatives from the lowest risk to the highest risk. Five investment alternatives have the following returns and standard deviations of returns

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