Question: Site A .2 50 .2 100 .2 110 .4 120 Site B .1 20 .2 50 .2 100 .2 150 .3 190 3 Kyle's Shoe

Site A
.2 50
.2 100
.2 110
.4 120
Site B
.1 20
.2 50
.2 100
.2 150
.3 190  Site A .2 50 .2 100 .2 110 .4 120 Site

3 Kyle's Shoe Stores Inc. is considering opening an additional suburban outlet. An aftertax expected cash flow of $100 per week is anticipated from two stores that are being evaluated. Both stores have positive net present values. .68 inta Probability 0.2 Site A Cash Flows sa 10 110 0.2 0.2 9.4 Site B Probability Cash Flow 2.1 20 2.2 50 0.2 lee 150 0.3 190 120 ..2 eBook Hing a. Compute the coefficient of variation for each site. (Do not round Intermediate calculations. Round your answers to 3 decimal places.) Print Coefficient of Variation SA Site References b. Which store site would you select based on the distribution of these cash flows? Use the coefficient of variation as your measure of risk Site A Site B 1 w

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