MNL Industries is considering an investment in derivatives, stocks, and bonds securities. You were assigned as a financial manager to assess the investments and make an investment decision. After an investigation of the possible outcomes, you made the estimates as shown in the table below:

   Scenario       Probability      Derivatives    Stocks   Bonds

   Normal              35%                 10                 10           15

   Boom                40%                  6                  12           13

   Recession        25%                 23                 17           18

   Given the data, satisfy the following requirements:

a. the coefficient of variation of derivatives is?

b. the coefficient of variation of stocks is?

c. the coefficient of variation of bonds is ?

Answer rating: 100% (QA)

The coefficient of variation CV is a measure of the relative variability or risk of an investment ex... View the full answer