You are working on the launch of a critical new product at your company. You have estimated the probability of success and potential impacts on the stock price over the next year. If the risk-free rate is 2% and the standard deviation is 19.2%, then what’s the CV and Sharpe Ratio? All else equal, would you prefer a higher CV? 

Answer rating: 100% (QA)

The CV is 96 and the Sharpe Ratio is 010 It is preferable to have a higher CV as it indicates tha... View the full answer