Question: The table below describes the expected return and the standard deviation of the return for Franchises A and B: Franchise A ($MM) Franchise B ($MM)
The table below describes the expected return and the standard deviation of the return for Franchises A and B:
|
| Franchise A ($MM) | Franchise B ($MM) |
| Expected Return | 26 | 24 |
| Standard Deviation | 17 | 10 |
The Franchise A is _____ the Franchise B in terms of coefficient of variation (CV).
| less risky than | ||
| as risky as | ||
| riskier than | ||
| None of the above.
|
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