Problem 13-6 (Algo) Coefficient of variation [LO13-1] Possible outcomes for three investment alternatives and their probabilities...
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Problem 13-6 (Algo) Coefficient of variation [LO13-1] Possible outcomes for three investment alternatives and their probabilities of occurrence are given next. Alternative 3 Failure Acceptable Successful Alternative 1 Outcomes 30 Probability 0.40 Alternative 2 Outcomes Probability 90 0.20 70 Outcomes Probability 0.30 90 110 0.40 175 0.20 290 0.50 0.20 200 0.60 380 0.20 Using the coefficient of variation, rank the three alternatives in terms of risk from lowest to highest. Note: Do not round intermediate calculations. Round your answers to 3 decimal places. Coefficient of Variation Rank Alternative 1 Alternative 2 Alternative 3 Problem 13-6 (Algo) Coefficient of variation [LO13-1] Possible outcomes for three investment alternatives and their probabilities of occurrence are given next. Alternative 3 Failure Acceptable Successful Alternative 1 Outcomes 30 Probability 0.40 Alternative 2 Outcomes Probability 90 0.20 70 Outcomes Probability 0.30 90 110 0.40 175 0.20 290 0.50 0.20 200 0.60 380 0.20 Using the coefficient of variation, rank the three alternatives in terms of risk from lowest to highest. Note: Do not round intermediate calculations. Round your answers to 3 decimal places. Coefficient of Variation Rank Alternative 1 Alternative 2 Alternative 3
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