Question: Two stocks have the following: Stock A: Expected Return = 10% & Standard Deviation = 15% Stock B: Expected Return = 12% & Standard Deviation

Two stocks have the following:

Stock A: Expected Return = 10% & Standard Deviation = 15%

Stock B: Expected Return = 12% & Standard Deviation = 18%

Calculate the coefficient of variation (CV) of each stock and identify which stock should be selected based on the CV. Briefly explain why the CV is useful in ranking the stock

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