Calculate the coefficients of variation for the following stocks:

Stock	Expected return	Standard deviation of return
1	0.065	0.36
2	0.02	0.17
3	0.1	0.24

Attempt 1/1

Part 1

What is the coefficient of variation for stock 1?

 

 

Attempt 1/1

Part 2

What is the coefficient of variation for stock 2?

 

 

Attempt 1/1

Part 3

What is the coefficient of variation for stock 3?

 

 

Attempt 1/1

Part 4

If you want to get the best risk-to-reward trade-off, which stock should you buy?

Stock 1

Stock 3

Stock 2

Answer rating: 100% (QA)

To calculate the coefficient of variation CV for each stock we divide the standard deviation of retu... View the full answer