Question: Mary Beth Clothes is considering opening an additional suburban outlet. An aftertax cash flow of $170 per day (expected value) is projected for each of

Mary Beth Clothes is considering opening an additional suburban outlet. An aftertax cash flow of $170 per day (expected value) is projected for each of the two locations being evaluated.

Site A Site B
Probability Cash Flows Probability Cash Flows
0.20 $90 0.10 $50
0.30 170 0.20 90
0.30 180 0.10 170
0.20 235 0.40 190
0.20 270
Expected value $170 Expected value $170

a. Compute the coefficient of variation for each site. (Do not round intermediate calculations. Round the final answers to 4 decimal places.)

Coefficient of variation
Site A
Site B

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