Mrs. Jane is considering two alternative investments with the following performance reports: Particulars Security VV Security UU
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Question:
Mrs. Jane is considering two alternative investments with the following performance reports:
Particulars | Security VV | Security UU |
Expected rate of return | 15% | 15% |
Variance | √110.5 | √164.7 |
Based on the information given, help Mrs. Jane to calculate the following:
Standard deviation and coefficient of variation for Security VV &
Standard deviation and coefficient of variation for Security UU
Based on your answer if Mrs. Jane is a risk-taker investor, which security will she choose? Give your reasons.
Related Book For
Fundamentals of Financial Management
ISBN: 978-1337395250
15th edition
Authors: Eugene F. Brigham, Joel F. Houston
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